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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MechaTama31Heh. I don't think you need a master's in politics to see that... ;)09/30/2014 - 7:32am
Matthew WilsonTrust me i read the same sites.I have a Master's in Applied Politics. I get to see through the spin both Left and Right that tend to be put on news stories.09/30/2014 - 1:02am
WymorenceI also have an extremely hard time in listening to people who froth at the mouth when the POTUS does something almost identical to the previous POTUS, but for some reason is subhuman for it this time around09/30/2014 - 12:43am
WymorenceThe problem is that opposing views are a good thing, but sites like Brietbart and their ilk are the exact opposite. 9/10 times they tweak the news to benefit their own views instead of just giving their own side of it.09/30/2014 - 12:41am
james_fudgeIf I were in a cult I might try and shut myself away from opposing views...09/29/2014 - 11:48pm
james_fudgeoh and Nate Silver and Politico too.09/29/2014 - 11:48pm
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MaskedPixelantehttps://twitter.com/raymond03155046/status/516735796754522113 "We're fundraising for the group who helped our pets out in their time of need." "lol ur just doing this for the money get over your cat."09/29/2014 - 9:26pm
MechaTama31https://www.humblebundle.com/store/p/dontmove_storefront <-- This looks like it might be the most incredible dollar I'll ever spend.09/29/2014 - 9:12pm
Matthew WilsonI agree. the same for MSNBC as well. both of them can go away, but like it or not its a free market and fox news make allot of money sadly.09/29/2014 - 7:46pm
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Andrew EisenWe used to have a reader who constantly posted DailyKOS articles in the Shout box. I was amazed, not so much by the amazing and horrifically disingenuous spin the site put on these articles, but that our reader would add his own spin on top of it!09/29/2014 - 6:05pm
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quiknkoldproblem with Breibart is, despite I totally agreeing with Nero's articles.....its freaking Breibart. Its not the best place int he world when it comes to trust. if DailyKos or think progress reported it....well...things would be better. but here we are.09/29/2014 - 6:00pm
Neo_DrKefkaAt this point I need to stop visiting certain sites. At least now I have a list of people and where they work where I need to avoid http://www.breitbart.com/Breitbart-London/2014/09/21/GameJournoPros-we-reveal-every-journalist-on-the-list09/29/2014 - 5:56pm
E. Zachary KnightNeo, Where in any published accounts of the games journo pro mailing list do they call anyone "misogynists, racist, sexist and that we are horrible people"?09/29/2014 - 5:47pm
 

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