Activision Paid $100 mln for RedOctane
In a Securities and Exchange Commission filing, publisher Activision disclosed that it acquired Guitar Hero publisher RedOctane for $99.9 million in cash and stock.
Activision could end up paying even more for the acquisition, if "the net income of the business over a certain period of time exceeds certain target levels by certain amounts." This situation would entitle former RedOctane shareholders to as much as $51 million in additional Activision stock.
Activision announced the acquisition in May, but finalized the deal on June 6. During the company’s most recent quarterly earnings conference call, CEO Robert Kotick called RedOctane’s hit music game Guitar Hero a "key product" for the holidays.
By comparison, the recent acquisition of Mythic by Electronic Arts cost $76 million.