Gamernode: News - $100 Million for Red Octane

$100 Million for Red Octane

In May 2006, Activision announced they had purchased Red Octane, makers of the extremely successful Guitar Hero. Financial details of the transaction have not been made public until now.  The SEC states that Activision paid US$99.9 million to acquire Red Octane. However, that may not be all they have to pay.

According to the SEC, former Red Octane shareholders may be entitled to a further $50 million dollars in Activision stock, if "the net income of the business over a certain period of time exceeds certain target levels by certain amounts."

Is the Guitar Hero franchise worth $150 million dollars? With the anticipated November release of Guitar Hero 2, that question will most certainly be answered this holiday season.

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