Viacom may be paying Harmonix an additional USD 208.7 million under terms of the company's acquisition, based upon the success of Rock Band.
MTV Games, a Viacom subsidiary, acquired Harmonix back in 2006 for USD 175 million. Viacom's Form 10-K statement, released last week, indicates that the company offered a financial incentive as part of the acquisition.
"In addition, to the extent financial results exceed specific contractual targets against a defined gross profit metric through 2008, former Harmonix shareholders will be eligible for incremental earn-out payments with respect to the years ended December 31, 2007 and December 31, 2008," the form read.
Viacom has already recorded a liability of USD 208.7 million for the expected earn-out payment and expects to have a final payment due in 2009 for performance through calendar 2008.
The company referred to the launch of Rock Band as "an unqualified success, setting the foundation for another valuable franchise."