7th Level Inc. said on Wednesday that it is in merger discussions with an unidentified company, and that it also plans to sell its PyroTechnix division, which develops 3D games.
Earlier this year, 7th Level stated that it planed to become less of a game developer and more of a supplier of services and software for a wide variety of entertainment, consumer, and business customers.
7th Level cofounder George Grayson resigned as chairman and chief executive officer earlier this year, and 7th Level shares, which traded as high as US$22.625 two years ago, fell to as low as $1.50. On Wednesday, shares of 7th Level rose $1.0625, or 51.5 percent, to $3.125.
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