Broderbund Software Inc. says it has retained the investment banking firm of Donaldson, Lufkin & Jenrette in order to "explore strategic alternatives."
That fact, and the news that the company expects a third-quarter loss, has led many to believe that Broderbund is up for sale - something the industry trades have been openly discussing for months now.
Reuters reported that Hasbro, Electronic Arts, and the Learning Company have all been suggested as parties that might be interested in acquiring Broderbund.
Broderbund's third fiscal quarter ended May 31, and for that three-month period, the company says it expects revenues of approximately US$52 million and a net loss of between $2.5 and $3.3 million (which would put it in the 12-to-15-cents-a-share range).
Reuters reported that, at the end of March, Broderbund cut approximately 70 people from its workforce (a cut of about 6.4 percent) as part of a move "to trim its annual costs by about $5 million, to focus on additional online areas, and become less dependent on CD-ROM products."
Disappointing sales for Riven contributed greatly to Broderbund's expected poor showing this quarter.