More Guitar Hero M&A Activity
Earlier this year Activistion paid ~$100mm for Red Octane, the distributor of Guitar Hero and other video games.
When I first got into Guitar Hero, my friend Brad Feld told me that a company called Harmonix in Boston, which Brad is a small angel investor in, actually makes the game. So I wondered if Red Octane is worth $100mm, what is Harmonix worth?
Well, we found out today. MTV paid $175mm in cash for Harmonix. Well done guys. Great game. Great payday.
The Guitar Hero franchise is worth $275mm, $100mm for distribution rights, and $175mm for the creators.
Cool. Get Guitar Hero and see what all the fuss is about.