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Activision Acquires Action-Sports Powerhouse Treyarch

3 Oct, 2001 By: Hive News

Activision Inc. said Wednesday that it has acquired Treyarch Invention, LLC., a leading console software developer of action and action-sports video games.

The acquisition further enables Activision to implement its multi-platformdevelopment strategy by bolstering the company's internal product developmentcapabilities for the next-generation console systems, the company said.

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, ShaunPalmer'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 issuedto Treyarch's equity holders and employees over the course of several years depending on the satisfaction of certain performance requirements and other criteria, Activision said.

The transaction was structured as a tax-free reorganization and will be accounted for under the purchase accounting rules, the company said.

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.

"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 c.o.o. of Activision. "The company's multi-platform development capabilities and proprietary cross-platform technologiescomplement 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."

Headquartered in Santa Monica, Calif., Treyarch was founded in 1996 andcurrently maintains five development teams and a cross-platform technology team. The company has several proprietary technologies used to create interactive entertainment experiences in the action and action-sports genres across multiple console platforms.

As part of the transaction, Treyarch's management team and key employees have signed long-term employment contracts with Activision. The company has approximately140 employees.

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