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Heffenfeffer
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Joined: 22 Apr 2002
Location: Las Cruces, NM |
0.  Posted: Fri Sep 22, 2006 8:27 am Post subject: MTV to purchase Harmonix for $175 Million |
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I'm getting a bad feeling about the future of GH and KR...
New York Times story
| New York Times wrote: | MTV Will Acquire Maker of Music-Oriented Games
By RICHARD SIKLOS
Published: September 22, 2006
MTV, the cable TV channel some critics have accused of straying too far from its musical roots, is to acquire Harmonix Music Systems, a maker of music-oriented video games, for $175 million in cash.
Harmonixâs main product, Guitar Hero, is a console game developed for Sonyâs PlayStation 2 that equips players with a simulator that looks like a guitar while promising them the ability to feel like a rock star without knowing how to play music or even leaving their bedroom.
The goals of the deal, which is to be announced today, are broader than putting the MTV logo on a Harmonix game box: for instance, the company wants to offer visitors to its Web sites, its new virtual worlds and its planned mobile services the ability to play along with, or remix, their favorite songs.
âIt is about people coming to MTV who are passionate about music and wanting to interact on deeper and deeper levels,â said Christina Norman, the president of MTV. âItâs not just about wearing the T-shirt.â
Ms. Norman insisted that music video was alive and well at MTV, particularly with its spin-off channels and Web offshoots. âRealistically speaking, there is more music available on all of the platforms of MTVâwherever the audience wants itâthan there has ever been before,â she said in an interview.
The purchase of Harmonix by MTV Networks, the cable-programming unit of Viacom, is the second music-related digital acquisition by a media conglomerate recently. Last week, the News Corporation acquired control of Jamba, a seller of ring tones and other products for mobile phones, for $188 million.
In addition to Guitar Hero, Harmonix has developed a line of karaoke game programs. MTV executives said they hoped to promote those programs, but also make them available on its Web sites and in VMTV, the digital virtual world it is introducing next year.
Harmonix is based in Cambridge, Mass., and was founded by Alex Rigopulos, its chief executive, and Eran Egozy, its chief technology officer, who are both staying with the company. |
(Edit) Harmonix has a press release as well:
| Harmonix Press Release wrote: | VIACOM'S MTV NETWORKS TO ACQUIRE HARMONIX MUSIC SYSTEMS, INC. FOR MTV
MTV To Expand Music-Based Offerings by Adding Creator of PS2 Hit Guitar Hero and other Top-Selling Music Gaming Franchises
New York, NY, and Cambridge, MA. - Sept. 22, 2006 - MTV Networks (MTVN), a division of Viacom Inc. (NYSE: VIA, VIA.B), today announced a definitive agreement to acquire Harmonix Music Systems, Inc., developer of the PlayStation 2 hit Guitar Hero and other music gaming titles, on behalf of MTV. Under the terms of the transaction, MTV Networks will acquire all of the outstanding stock of Harmonix for $175 million in cash. In addition, Harmonix shareholders may be eligible for incremental earn-out payments through 2008, to the extent that financial results exceed specific targets.
The acquisition of Harmonix demonstrates MTV's commitment to music and furthers its strategy of engaging passionate music fans through a deep and immersive multi-platform entertainment experience. With the addition of Harmonix's strong music gaming titles, MTV will enhance its music-based universe of entertainment, news, gaming, and interactive content offerings, and increase audience engagement and time spent with the brand across all screens.
The announcement follows MTV Games' successful partnership, initiated in November 2005, to feature Harmonix's Guitar Hero franchise in original programming, creative promotions and competitions across a number of MTV's multi-platform properties. Guitar Hero, published by RedOctane/Activision, is among the top-selling PlayStation 2 games this year and has been honored with several accolades at the Interactive Achievement Awards, Game Developer Choice Awards, and other industry events. Guitar Hero 2 is scheduled for release this fall.
"The acquisition of Harmonix will deepen MTV's connection to its audience via on-line, mobile and console music gaming, and expand the relationship with both labels and artists through the creation of games based on classic songs as well as future album releases," said Christina Norman, President, MTV. "Harmonix's technology allows everyone to pursue their rock and roll fantasies, even people like me, with more musical ambition than actual talent."
"Harmonix is a wonderful addition to Viacom's tremendous collection of digital assets, and is precisely the type of transaction that will help us aggressively grow our digital business while maintaining strong fiscal discipline," said Philippe Dauman, President and CEO, Viacom Inc. "We're committed to a swift integration and look forward to helping Harmonix become even stronger with the support of the incredible marketing and creative power at MTV Networks."
"The acquisition of Harmonix advances MTV Networks' strategy of connecting with target audiences by creating immersive, multi-platform environments that extend to every device they use," said Judy McGrath, Chairman and CEO, MTV Networks. "Harmonix is an innovator in giving audiences new and dynamic ways to interact with music, and I couldn't be more excited to welcome the company into MTV Networks' strong portfolio of multi-platform brands."
Harmonix pioneered music and rhythm gaming with the introduction of Frequency in 2001 and Amplitude in 2003. These games won numerous accolades including one of Rolling Stone's "Best Console Games of 2003" and IGN's "Reader Top 10". The company also developed the Karaoke Revolution franchise, which turned singing into a competitive game. This title was named by TIME Magazine as the "#1 Video Game of 2003" and won Electronic Gaming Monthly's 2003 "Gaming Innovation of the Year" award.
"We are very excited to combine our unique assets in the music and gaming space with one of the most recognized brands in the music world. We look forward to continuing to create innovative ways for people to enjoy music," said Alex Rigopulos, Harmonix's CEO.
Mr. Rigopulos and other key employees will continue in their roles following the completion of the acquisition. Harmonix will join MTV Networks' Music and LOGO Enterprises unit, led by Jeff Yapp, Executive Vice President.
"Harmonix's talented team will be a powerful and important addition to MTV that brings enormous talent and expertise. All of us are excited to begin working with them to develop meaningful and creative ways to deliver music to our audience," said Mr. Yapp.
The transaction is expected to close in the 4th quarter of 2006, and is subject to certain customary conditions.
About MTV Networks:
MTV Networks, a unit of Viacom (NYSE: VIA, VIA.B), is one of the world's leading creators of programming and content across all media platforms. MTV Networks, with more than 130 channels worldwide, owns and operates the following television programming services - MTV: MUSIC TELEVISION, MTV2, VH1, mtvU, NICKELODEON, NICK at NITE, COMEDY CENTRAL, TV LAND, SPIKE TV, CMT, NOGGIN, VH1 CLASSIC, LOGO, MTVN INTERNATIONAL and THE DIGITAL SUITE FROM MTV NETWORKS, a package of 13 digital services, with all of these networks trademarks of MTV Networks. MTV Networks connects with its audiences through its robust consumer products businesses and its more than 100 interactive properties worldwide, including GameTrailers.com, IFILM, Neopets, Xfire, Y2M, and online, broadband, wireless and interactive television services. MTV Networks also has licensing agreements, joint ventures, and syndication deals whereby all of its programming services can be seen worldwide.
About Harmonix Music Systems, Inc.:
Harmonix is a videogame development company based in Cambridge, MA. The company specializes in music-based games and is renowned for groundbreaking design innovation. Harmonix was founded in 1995 by Alex Rigopulos (CEO) and Eran Egozy (CTO), who met while working in the computer music group at the MIT Media Laboratory. Alex and Eran formed Harmonix initially not to develop videogames, but rather to invent new ways for non-musicians to experience the unique joy that comes from making music. (http://www.harmonixmusic.com)
Cautionary Statement Concerning Forward-looking Statements
This news release contains both historical and forward-looking statements. All statements which are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not based on historical facts, but rather reflect Viacom's current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties and other factors include factors described in Viacom's news releases and filings with the Securities and Exchange Commission, including but not limited to our 2005 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the three months ended March 31, 2006 and the six months ended June 30, 2006. The forward-looking statements included in this news release are made only as of the date of this release, and, under Section 27A of the Securities Act and Section 21E of the Exchange Act, we do not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
All brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
# # #
Contacts:
Marnie Black
MTV
212-846-7004
Mark Jafar
MTV Networks
212-846-8961
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Cutriss
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Joined: 24 Jan 2002
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| 1. Posted: Fri Sep 22, 2006 9:08 am Post subject: Re: MTV to purchase Harmonix for $175 Million |
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This line is a bit concerning: | Harmonix Press Release wrote: | | Mr. Rigopulos and other key employees will continue in their roles following the completion of the acquisition. Harmonix will join MTV Networks' Music and LOGO Enterprises unit, led by Jeff Yapp, Executive Vice President. |
Sounds like they're buying the brand and some of the tech, but only a couple of the people. I expect Guitar Hero will swan-song when GH2 comes out, and then any future offerings will be lackluster or worse.
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Heffenfeffer
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Joined: 22 Apr 2002
Location: Las Cruces, NM |
| 2. Posted: Fri Sep 22, 2006 9:29 am Post subject: What will happen to the various franchises? |
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Right now I'm kinda worried about what will happen to all of Harmonix's franchises. Does anyone have any definite answers to these questions?
1:Who will publish Guitar Hero 2? (Will it still be RedOctane/Activision, or MTV now?)
2: Will MTV scrap already confirmed songs or force new ones onto the songlist for Guitar Hero 2? (Odds are this will be a definite "Yes" for GH3 and later.)
3: Will Guitar Hero 2 or later installments still have multiplatform releases (which was announced by Activision)?
4: Will the Karaoke Revolution series continue?
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Cutriss
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| 3. Posted: Fri Sep 22, 2006 11:16 am Post subject: Re: What will happen to the various franchises? |
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Based on what I've read today (because I had similar questions)... | Heffenfeffer wrote: | | 1:Who will publish Guitar Hero 2? (Will it still be RedOctane/Activision, or MTV now?) |
MTV already has a partnership with RedOctane on GH, so I don't think this will affect that. | Heffenfeffer wrote: | | 2: Will MTV scrap already confirmed songs or force new ones onto the songlist for Guitar Hero 2? (Odds are this will be a definite "Yes" for GH3 and later.) |
I imagine GH2 is already in production or at least has been mastered and sent off for duplication. It hits shelves in under two months, and they have to have enough to meet holiday demand, which will be pretty high with all the buzz from the last ten months. | Heffenfeffer wrote: | | 3: Will Guitar Hero 2 or later installments still have multiplatform releases (which was announced by Activision)? |
I can't give you anything more than speculative thoughts here, but I don't think MTV would interfere with the publishing decisions, outside of marketing and locality. I don't think MTV cares at all what platforms the game is transitioning to. | Heffenfeffer wrote: | | 4: Will the Karaoke Revolution series continue? |
That's a very good question, although I don't doubt that since it's all Konami's IP, they could obtain the assets from Harmonix and bring the development in-house. And it has been a pretty good series for Konami (hence the branching-out to country and so-forth), so I really doubt Konami would falter on the issue.
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Baka of the Orochi
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Joined: 26 Jan 2002
Location: Chicago area |
| 4. Posted: Fri Sep 22, 2006 1:04 pm Post subject: |
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Just as long as we don't ever see that horrendous excuse for a game DrumScape again.
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davidbrit2
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Joined: 03 May 2002
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| 5. Posted: Fri Sep 22, 2006 1:06 pm Post subject: |
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| Baka of the Orochi wrote: | | Just as long as we don't ever see that horrendous excuse for a game DrumScape again. |
Well, since MTV owns the US patent for drum games, maybe this means they'll let Harmonix create a "Drum Hero" game that hopefully won't suck.
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Last edited by davidbrit2 on Sun Mar 01, 2009 8:23 am, edited 1 time in total |
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jpoppyz
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Joined: 19 Nov 2005
Location: Grand Rapids, MI |
| 6. Posted: Fri Sep 22, 2006 1:36 pm Post subject: |
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| davidbrit2 wrote: | | Baka of the Orochi wrote: | | Just as long as we don't ever see that horrendous excuse for a game DrumScape again. |
Well, since MTV owns the US patent for drum games, maybe this means they'll let Harmonix create a "Drum Hero" game that hopefully won't suck. |
if its anything like guitar hero, its better than that "game" mtv drumscape but thats like saying eating poopy is better than eating nothing.
In other words, it will still suck.
On the topic, however, i don't think harmonix owns the title "guitar hero." in other words, if activision/red octane say no(which is VERY unlikely) on allowing MTV/harmonix make guitar hero games, guitar hero will either be gone forever or red octane will handle it.
i think that guitar hero is gonna die out soon. As in its just gonna crash after 2. People are hyping this game up far too soon...the games been out for less than a year! Yes, the first one was a hit, but just because the first one put redoctane/harmonix on the charts doesnt mean that guitar hero is here to stay.
To put it simply, red octane/activision/harmonix/MTV/EVERY frick BUY OUT IN THIS BUYOUT FEST! is taking a bigger bite than it can handle. They're gonna choke, and its gonna hurt them and perhaps "kill" guitar hero.
that, or it will become the next tony hawk series(new installments with dumber ideas each year, except still manage to sell like crazy.. I had enough after THPS3).
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Dark Hogosha
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Joined: 12 Feb 2002
Location: Dubuque, Iowa |
| 7. Posted: Fri Sep 22, 2006 3:21 pm Post subject: |
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The only thing that can possibly come out of making GH a one-game-every-freakin'-week series like Tony Hawk is that, with all the extra funding, they MIGHT do another game in the Frequency/Amplitude series. Sure-fire hits (GH, Tony Hawk, Call of Duty, etc.) are the things that fund the non-sure-fire hits.
Here's hoping.
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jpoppyz
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Joined: 19 Nov 2005
Location: Grand Rapids, MI |
| 8. Posted: Sat Sep 23, 2006 6:11 pm Post subject: |
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| Dark Hogosha wrote: | The only thing that can possibly come out of making GH a one-game-every-freakin'-week series like Tony Hawk is that, with all the extra funding, they MIGHT do another game in the Frequency/Amplitude series. Sure-fire hits (GH, Tony Hawk, Call of Duty, etc.) are the things that fund the non-sure-fire hits.
Here's hoping. |
well, technically activision/RO doesnt own harmonix at all. harmonix could stop making GH games if they wanted to; im pretty sure they arent under any contract.
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Syxx
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| 9. Posted: Mon Sep 25, 2006 12:16 am Post subject: |
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i'm suprised harmonix was worth that much money but whatever
ya lets see a new drum game, GH is boring to me... no challenge because you don't get a reward for how well you time stuff in that game
who cares if mtv owns harmonix, i doubt it will make a difference anyway
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