THQ to Acquire Rainbow Studios7 Nov, 2001 By: Hive News
Game publisher THQ Inc. said Wednesday that it has entered into a letter of intent to buy Rainbow Studios, a Phoenix-based game creator and developer.
THQ said the acquisition further strengthens its internal development capabilities, enhancing the company's ability to create gaming content for next-generation console systems including PlayStation 2, GameCube and Xbox.
Rainbow Studios' 15-year video game history includes the Motocross Madness PC series, ATV Offroad Fury for PlayStation 2, Tiger Woods PGA Tour 2000 for PC, as well as TV and game-animation projects.
Currently under development at Rainbow Studios are Activision's Matt Hoffman's Pro BMX for PlayStation 2, Lucas Arts' Star Wars Racer II: Racer Revenge for PlayStation 2 and Infogrammes' Splashdown for PlayStation 2.
"For the past 15 years, the team at Rainbow Studios has consistently delivered the best in interactive entertainment through every technology wave," stated Brian Farrell, president and c.e.o., THQ. "This acquisition helps position THQ at the leading edge of content creation with unparalleled internal development talent."
"We are delighted to be a part of such a thriving video game publisher at the onset of tremendous growth for our industry," stated Earl Jarred, chairman, Rainbow Studios. "Our single greatest achievement through the years has to be the amazing talent we have assembled from all corners of the globe. I am delighted that they will now have even greater opportunities to succeed with the added strength and support of THQ behind them."
"Rainbow will be a great addition to our internal studio roster," stated Jeff Lapin, vice chairman and c.o.o., THQ. "Their proven ability to create original franchise properties will be invaluable to our next-generation console strategy."
"We look forward to being a part of THQ's continued success," stated Mark DeSimone, president, games, Rainbow Studios. "We have a very talented and dedicated team at Rainbow Studios, and feel that our development culture matches very well with the team at THQ. Our technology, expertise and passion for games, combined with THQ's marketing and distribution will make for a winning combination in this generation of consoles and beyond."
Calabasas Hills, Calif.-based THQ said the acquisition is subject to the satisfaction of certain conditions, including the execution of definitive documents.
Under the terms of the agreement, Rainbow Studios will become a wholly owned subsidiary of THQ. As part of the acquisition, THQ will issue approximately 1 million shares of common stock to Rainbow shareholders. The acquisition is expected to close as soon as all necessary approvals and consents are obtained, THQ said.