Rock Band earns Harmonix a $208.7 million bonus
Viacom has paid Rock Band developer Harmonix an additional USD 208.7 million under terms of the company's acquisition
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."