Viacom Drops Harmonix And Its Liabilities For $50
My, how the mighty have fallen.
Things can change quickly in any big business situation, especially one that involves the fickleness of retail consumers. Or, in this case, the over-saturating of a lucrative market. Back in 2006, right around the time the rapidly growing music genre was primed for an explosion laden with plastic instruments, MTV parent company Viacom purchased Harmonix for $175 million in cash. Late last year, after yet another decline in said genre and despite high praise for Harmonix's Rock Band 3, the studio was sold off...and for a slightly lower price. According to a report by the Wall Street Journal, Viacom sold the money-hemorrhaging studio to an affiliate of New York-based investment firm, Columbus Nova, for $50. No, that isn't a typo. Fifty bucks. As in, $10 less than the cost of a new copy of Rock Band 3. Of course, the new owner will also inherit all of Harmonix's liabilities, which includes the designer's music rights fees as well as the value of any existing franchise inventory.
Still, things aren't exactly what they used to be. Many still love the music/rhythm games but sometimes, the situation reaches the dreaded "enough is enough" point.
1/4/2011 3:04:48 PM Ben Dutka