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Is Guitar Hero worth $100 million?

updated 08:20 pm EDT, Wed August 9, 2006

Guitar Hero worth $100M?

An interesting fact has come to light through the Securities and Exchange Commission probe into Activision. Guitar Hero developer RedOctane must be full of geniuses, because it seems that Activision paid nearly $100 million to acquire the company. That's $30 million in common stock, $30.9 million in direct payment, and another $39 million's worth of stock promised "within two years of the closing date." Some past RedOctane shareholders may grab a total of $51 million in Activision stock if games like Guitar Hero II do well. Can it possibly do enough business to justify the acquisition?

by MacNN Staff




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