Activision Acquire RedOctane

Activision announced it has entered into an agreement to acquire video game publisher RedOctane, the publisher of the popular Guitar Hero franchise. This acquisition will provide Activision with an early leadership position in music-based gaming, which the company expects will be one of the fastest growing genres in the coming years.

Guitar Hero is the fifth highest teen-rated game ever released on the PS2 with a 92 rating. The game challenges players to be a lead guitarist of their own rock and roll band. The game is sold with a guitar-shaped controller that lets consumers simulate playing the guitar for more than 30 popular songs that were made famous by such artists a! s the Red Hot Chili Peppers, David Bowie, and Ozzy Osbourne. Guitar Hero features six venues, eight unique characters, many guitars, and a range of difficulty levels, as well as a two-player mode that lets gamers challenge friends to see who rocks harder.
Under the terms of the agreement, RedOctane will become a wholly owned subsidiary of Activision and the company's management team and key employees will sign long-term employment contracts with Activision. RedOctane will continue to be based in Sunnyvale, CA. The transaction is expected to close during the current fiscal quarter. The closing of the transaction is subject to various specific and general closing conditions. North Point Advisors acted as financial advisor to RedOctane. Financial terms of the agreement were not disclosed.

About RedOctane

RedOctane, Inc. is a publisher, developer, and distributor of interactive entertainment software, hardware and acces! sories. The company offers its interactive entertainment products in versions that operate on the PlayStation(R)2 computer entertainment system console from Sony Computer Entertainment, Xbox(TM) video game system from Microsoft, and on personal computers ("PC"). RedOctane's leading software product offerings include In The Groove for the PlayStation 2 and Guitar Hero for the PlayStation 2. RedOctane also designs, manufactures, and markets high quality video game peripherals and accessories and has won awards for the Ignition(R) Dance Pad and the Guitar Hero SG(R) Controller. RedOctane is headquartered in Sunnyvale, California.