Viacom, parent company owning MTV, BET, and Paramount Pictures, payed $175 Million for Harmonix Music Systems back in 2006. As of December 23, they sold HMS for $50… YES, Fifty Dollars! There is a catch though…
Purchaser must take on all liabilities. A private holding company, Harmonix-SBE Holdings, L.L.C. (An Affiliate of Columbus Nova, a multi-strategy Investment Firm) acquires all responsibilities/liabilities including “music rights fees … responsibility for lots of unsold games and equipment sitting on warehouse shelves.” The total price is undisclosed, but Viacom tends to gain more from the sale due to Tax incentives and said liability relief.
The Los Angeles Times notes that the inexpensive deal had major tax ramifications, as Viacom “received a 2010 tax benefit of about $50 million based on losses in its investment”
Harmonix is going back to independence, John Drake mentions here– “We’re excited to be returning to our roots as an independent and privately owned studio.” This could mean many things. We will just have to keep an eye out for more info.
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