Harmonix Receives Big Bonus for Rock Band’s Success
Rock Band has been bringing in money for Harmonix. And it just brought in a lot more. Viacom recently paid Harmonix a reported $208.7 million as a bonus for the company’s success. The bonus was outlined in Viacom’s 2006 buyout of Harmonix for $175 million.
Gameindustry.biz reported:
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.
What does this mean in layman’s terms? Well, if Harmonix exceeds their projected income, their shareholders get a little extra something.
Viacom was also quoted as calling Rock Band “an unqualified success, setting the foundation for another valuable franchise.” Valuable enough to shell out a $200 million bonus? Apparently so.
