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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MechaCrashThe point of the Bechdel Test isn't "is this film sexist," it's to illustrate "this is an incredibly low bar and most movies STILL can't pass it."11/21/2014 - 10:11pm
mthielNew report on Adam Lanza http://tinyurl.com/pnj9os611/21/2014 - 8:07pm
Andrew EisenIf you missed the HuffPost segment I guested on, the replay is now embedded in the story.11/21/2014 - 6:05pm
Wonderkarphttps://pbs.twimg.com/media/B2__4yZCcAA9Ytp.jpg these look amazing. Peach is the only one I'm tempted to open cause her packaging is bent. get another nonbent one....man. toycollector me and gamecollector me is fighting11/21/2014 - 5:51pm
WonderkarpJust finalized my Smash Bros free Sound Track Order. Also got 4 amiibos and they look fantastic. I'm afraid to open them. they look spectacular!11/21/2014 - 5:45pm
james_fudgeCan we all agree that Andrew cleans up nicely and can go on any program?11/21/2014 - 5:01pm
Wonderkarpthank you for that line, Andrew. alot of great films fail the bechdel test. Gravity fails it and it has a female lead.11/21/2014 - 4:48pm
Andrew EisenAw, thanks James! Well, now I have to drive back to work!11/21/2014 - 4:45pm
Andrew EisenDidn't have a chance to say this on the HuffPost segment but while the Bechdel test is useful as a broad examination of gender representation in media, it's not at all appropriate as a judgment of quality.11/21/2014 - 4:45pm
james_fudgeAndrew you killed it!11/21/2014 - 4:44pm
WonderkarpMadeline Bergman. second female, they never speak of men, just a computer program. it passes the test11/21/2014 - 4:34pm
E. Zachary KnightDoes Other M have more than one woman in it?11/21/2014 - 4:31pm
Wonderkarpyet Metroid Other M, a game where people cried sexist due to the commanding officers restricting Samus, passes the test....11/21/2014 - 4:21pm
Wonderkarpwait...they are using the bechdel test to determine which games are sexist?.....how does that work with a game like Super Mario Bros when there is no Dialogue? test itself is BS. Alien doesn't pass it11/21/2014 - 4:20pm
james_fudgeAndrew Eisen on Ice! Please join in at 4:23 pm et and support our bestie! http://live.huffingtonpost.com/r/segment/sweden-sexism-video-game/546d41cffe344486d400023711/21/2014 - 4:05pm
Matthew Wilsonthose are the same people that said google should pay to list news sites in their news reader, and than accused google of blackmail when google said no and delisted them.11/21/2014 - 4:03pm
Wonderkarpwait....europe can dismantle a company not founded in europe?11/21/2014 - 3:54pm
NeenekoHrm, that does raise interesting questions about anti-trust laws and transnational corporations.11/21/2014 - 3:54pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/11/europes-parliament-poised-to-call-for-a-break-up-of-google/ what is with Europe? good think they dont have the power to do it. worse comes to worse google can block any European country that tries.11/21/2014 - 3:49pm
Andrew EisenFun Fact: Back when it was new, I was linked to that docket by three separate people in the same day. It was submitted as proof of their claim. In all three cases, the docket didn't even address what they were talking about. Did any of them read it?11/21/2014 - 3:00pm
 

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