The acquisition further enables Activision to implement its multi-platform development strategy by bolstering the company’s internal product development capabilities for the next-generation console systems, and strengthens Activision’s leadership position in the action and action-sports genres. The transaction underscores Activision’s commitment to acquiring proven technical and design talent that has a history of high-quality product creation, while overtime enhancing the company’s financial operating model.
Treyarch is an outstanding developer with an experienced management team and a very talented group of programmers, designers and artists, said Ron Doornink, President and COO of Activision, Inc. The company’s multi-platform development capabilities and proprietary cross-platform technologies complement Activision’s rich brands making them a natural fit.
We are tremendously pleased to be a part of Activision, said Don Likeness, president of Treyarch. We look forward to developing the best action and action-sports games available and are confident that our multi-platform development strengths will contribute to Activision’s ongoing success and leadership in the console marketplace.
Activision has had a long-standing relationship with Treyarch. The developer is currently in production on several next-generation games for Activision, including Tony Hawk’s Pro Skater 2x, Spider-Man The Movie, Shaun Palmer’s Pro Snowboarder 2, Kelly Slater’s Pro Surfer and Minority Report. Additionally, Treyarch has developed other popular games, including Spider-Man and Tony Hawk’s Pro Skater 2 for the Dreamcast for Activision and Triple Play Baseball, Nagano Olympic Hockey 98, Draconus: Cult of the Wyrm and Max Steel: Covert Missions for other publishers.
Under the terms of the agreement, Treyarch becomes a wholly owned subsidiary of Activision. Treyarch equity holders and employees will receive 545,974 shares of Activision common stock in connection with the acquisition. Up to 224,077 additional shares of Activision common stock also may be issued to Treyarch’s equity holders and employees over the course of several years depending on the satisfaction of certain performance requirements and other criteria. The transaction was structured as a tax-free reorganization and will be accounted for under the purchase accounting rules.
Activision does not expect this transaction to affect its previously announced revenue and earnings per share guidance for the fiscal year ended March 31, 2002 or for fiscal year 2003.
SOURCE: COMPANY PRESS RELEASE
