While Jack Tramiel vertically integrated Commodore’s manufacturing to the point of making the actual micro-processors used in its home computers, the one tack he didn’t follow was control of any of Commodore’s retail outlets – but now that he is having his Commodore time over again, this time running Atari Corp, he has moved to rectify the omission, bidding $6.25 a share cash, $67.3m all told, for The Federated Group Inc, which runs a chain of home entertainment and consumer electronics retail stores offering a wide selection of high quality nationally recognised brand name merchandise at prices competitive with discount and other retailers. The number of stores operated by Federated was not given, but the price being paid implies around 30 to 50 – hardly sufficient to put Atari into the Tandy Corp class, but a big step in the right direction. Atari already has commitments to accept its offer from a partnership controlling 55% of Federated shares and the board has unanimous approved the offer.
