Rock Band dev sued to the tune of $131m
Viacom is suing Harmonix over earn-out payments from its 2006 acquisition deal.
Viacom is suing Rockband developer Harmonix for $131m, claiming a miscalculation was made during its 2006 acquisition of the studio.
As detailed by The Hollywood Reporter, Viacom's beef lies with earn-out payments made during its purchase of the studio. Earn-outs are paid to the original owners of the purchased company, encouraging people to stick around after the deal goes down.
The thing is, earn-out payments are based upon the future success of the merged company. Harmonix was bought by Viacom at a time when rhythm games were all the rage - and we all know what's happened to the genre in recent years.
At the end of 2010 Viacom sold Harmonix for $50 - less than the retail price of one of its own plastic guitars.
Harmonix is already suing Viacom for $13m over alleged unfair business practices.
It's a sad state of affairs, really. Rock Band 3 was a great game, scoring a 9 in our review, but it didn't sell. Although Pearson says that his sister bought a copy, which is nice.






User Comments
Woffls
This is basically Viacom being all pissed off that they lost lots of money, which is their own fault because they lacked foresight and didn't understand the industry well enough to know that the Guitar Hero concept had a limited future.