A private arbitrator has ordered that Viacom pay $383 million to former shareholders of Harmonix, developer of the Rock Band series and a former Viacom subsidiary.
The dispute concerns bonus payments due to Harmonix shareholders following Viacom's acquisition of the studio in 2006. The terms of the deal required that Viacom pay bonuses of 3.5 times gross profit in excess of $32 million in 2007, and in excess of $45 million the following year.
Viacom paid out $150 million in bonuses for 2007, but didn't paid a penny in 2008. Harmonix shareholders including founders Alex Rigopulos and Eran Egozy began legal proceedings against Viacom, accusing it of manipulating its finances to avoid a costly payout.
Viacom then sought to recover the bulk of the $150 million it paid out, claiming the payments were miscalculated. The arbitrator has sided with Harmonix, according to the LA Times, but the $383 million falls some way short of the additional $550 million the shareholders sought. Viacom told the paper it had filed a suit seeking to overturn the decision, claiming certain arguments and evidence were "improperly excluded."
Harmonix bought itself back from Viacom in late 2010 for just $49.99, with Viacom gaining a $50 million tax benefit by getting the developer off its books.
Source: LA Times
Comments
2Filing a suit to overturn a binding arbitration too? Wow, it never ceases to amaze me how dishonest some corporations are. It's too bad you cannot legislate ethics.
Now take the money and spend it licensing Prince's music! We want Prince godammit!