Accounting Firm Says Viacom Owes Harmonix $383 Million

December 28, 2011 -

According to an accountant jointly appointed by both Viacom and former (major) shareholders of Harmonix, the former parent company of the Rock Band series makers owes in excess of $383 million. The details of the audit were revealed last week, according to this Gamasutra report.

On Tuesday, Viacom filed suit in a Delaware court asking that the accounting firm, BDO USA, "consider arguments and evidence that were improperly excluded" from its report, saying that its figures resulted from "manifest error." The legal battle is related to the 2006 deal that saw Viacom acquiring Boston-based Harmonix shortly after the success of its Guitar Hero games. Under the terms of the agreement, Viacom paid Harmonix's shareholders an initial sum of $175 million in September 2006, with the promise of bonus earn-outs dependent on the studio's performance in 2007 and 2008.

For 2007, Viacom was supposed to pay shareholders 3.5 times any gross profit made over $32 million during the year. For 2008, it was supposed to pay 3.5 times anything over $45 million. But the only earn-out money to come from Viacom was a $150 million payment in 2007 in anticipation of that year's profits. The company now claims that the sum was based on a "preliminary calculation." According to Viacom's lawsuit filed in September, the calculation was not accurate, and the amount owed for both 2007 and 2008 combined was a mere $18 million.

If BDO's figures are certified by the court, the total purchase price of Harmonix would come to right around $708 million, which includes the initial $175 million purchase price, a $150 million earn-out payment that was already received, and the additional $383 million that it allegedly owes.

Source: Gamasutra

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ZenOk, so yeah...it's kind of a lie...but I HAD to go with "Nope. I'm zen." lol. Only broke one controller myself (PS3) on a playthrough of Uncharted that got frustrating.07/09/2014 - 10:38pm
MechaTama31I am not proud of this, but I had to select the "multiple times" option. Not for the same game, but I went through several controllers (particularly dreamcast ones. fragile, maybe?)07/09/2014 - 6:52pm
Andrew EisenI'd say breaking a handheld out of anger counts (even if it's just the hinge). Likewise, I'd say busting a keyboard or mouse counts so long as you were playing a game at the time.07/09/2014 - 12:28pm
ConsterAnd since there happened to be (without me realizing) a towel which broke the fall resulting in 'only' a damaged hinge, would that be option 2 or 4?07/09/2014 - 12:23pm
ConsterAbout the most recent poll: since the "controller" for the DS is basically part of the DS, does throwing my DS against the floor because Mario Basketball cheats count?07/09/2014 - 12:22pm
Sleakersaw this on Forbes, thought it was pretty good: http://www.forbes.com/sites/timworstall/2014/06/03/if-comcast-and-time-warner-dont-compete-then-why-shouldnt-they-merge/07/08/2014 - 9:09pm
Adam802the Sun is claiming games are as addictive as herion: http://www.eurogamer.net/articles/2014-07-08-the-real-story-behind-the-suns-gaming-as-addictive-as-heroin-headline07/08/2014 - 6:43pm
ZippyDSMleeIt takes 2-6 days to transferfunds to your bank, it can take up to 30 days for ebay to give you moeny from a sale. But lord to spend it its instant!07/08/2014 - 10:50am
Cheater87http://www.twinfinite.net/2014/07/08/evil-within-receive-gore-mode-dlc-japan/07/08/2014 - 10:00am
MaskedPixelantehttp://www.joystiq.com/2014/07/08/bandai-namco-pulling-tales-of-phantasia-soon-to-be-unusable/ BN is shutting down Tales of Phantasia, and nothing of value will be lost.07/08/2014 - 9:34am
Sleaker3 business days when I've done it in the past.07/08/2014 - 12:54am
MaskedPixelanteOk, thanks.07/07/2014 - 9:12pm
Sora-Chan@MP If I recall correctly, it takes a few days.07/07/2014 - 7:49pm
MaskedPixelanteJust a few hours, it concerned me because I checked my bank account after the purchase was made, and no money appeared to be gone. At least with CC, it changes my credit limit when I purchase something, even if it doesn't process for a few days.07/07/2014 - 2:44pm
E. Zachary KnightNever done one that way, but I know the other way often takes forever and a day. How long have you been waiting?07/07/2014 - 2:28pm
MaskedPixelanteHas anyone ever done a bank-to-Paypal transfer before? How long does it usually take?07/07/2014 - 1:26pm
TheSmokeyViolent video games may actually increase players' sensitivity: study - http://technology.canoe.ca/Gaming/News/2014/06/30/21775831-relaxnews.html07/07/2014 - 12:37pm
E. Zachary KnightIf anyone wants to know, I just launched a Kickstarter campaign for my game Demon's Hex. https://www.kickstarter.com/projects/ezknight/demons-hex-cross-platform-collectible-token-game07/07/2014 - 11:09am
Cheater87Australia to get stricter game regualtion? http://mmgn.com/ps4/news--australia-s-tyrannical-game-censorship-legisl07/05/2014 - 1:53pm
MaskedPixelanteNo, I'm just saying that, were Ubisoft to shut down, the only thing of value lost would be Ubiart.07/05/2014 - 9:38am
 

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