Speculated on for weeks and reported last week by GameSpot News, Broderbund's intention to merge with The Learning Company was announced Monday - a transaction valued at US$420 million.

　　While the transaction is subject to certain conditions and approvals, it is estimated that the merger is expected to finalize before the end of September 1998.

　　"Broderbund has always produced the finest quality products in our industry and has built major franchises including Carmen Sandiego, The Print Shop, Living Books, and Family Tree Maker," said Douglas Carlston, chairman and founder of Broderbund. "Combining our award-winning titles with those of The Learning Company will give us exceptional strength in both domestic and international markets and provide great opportunities for the combined new company."

　　"Broderbund's well-known, award-winning brands, including Carmen Sandiego, Family Tree Maker, Arthur, KidPix, and The Print Shop are an excellent addition to the Learning Company portfolio," said Kevin O'Leary, president of The Learning Company. "The combination of our online technologies will allow us to expedite our development efforts to create state-of-the-art Internet products for genealogy, education, filtering services, and productivity. In addition, the combined business will have access to a database of over 20 million registered end-users who have purchased one of our products and desire to hear about more offerings, which will allow us to build our presence in the online and Internet channel."

　　"In an industry that has been rapidly consolidating, we believe that this merger will align Broderbund with the strongest possible partner," said Joe Durrett, CEO of Broderbund. "The combination of brands will produce leading market positions for most of the core age, product, and price segments in education as well as leading positions in home graphics, home design, genealogy, and a unique position in family entertainment software anchored by the Myst and Riven titles."

　　Broderbund's Red Orb Entertainment has published a number of titles within the past year, including Warlords III: Reign of Heroes, Warbreeds, Riven, and Take No Prisoners.