Viacom Wants To Sell Off Haromonix, Developer Of Rock Band
Viacom, the parent company of MT V announced today that they are in talks to sell off Harmonix. Harmonix is a Massachusetts based subsidiary that developed the popular music video game Rock Band. Viacom had recorded $260 million in write-offs on the value of Harmonix for the third quarter.
“Harmonix has and will continue to create terrific video games, but for us it is about focus,” stated Viacom’s CEO Philippe Dauman. “The console games business requires an expertise and scale that we don’t have.”
MTV bought Harmonix in 2006 for $175 million in cash plus a two-year earns-out. Although the games Harmonix sells have positive reviews, the company had a loss of $65 million EBITDA. Some of the potential buyers for Harmonix include Ubisoft, Electronic Arts, and Activision.
[DealBook]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry