How much did Activision spend to acquire RedOctane?

How much did Activision spend to acquire RedOctane? Activision spent approximately US$100 million to acquire RedOctane. Contemporary accounts commonly round the reported US$99.9 million purchase price to US$100 million.

RedOctane was an important acquisition because it was not merely a peripheral maker. The company owned or published the Guitar Hero business and worked with Harmonix, whose development team created the original game. RedOctane also produced the guitar-shaped controller that made the series distinctive in living rooms.

Activision announced the planned acquisition in May 2006, and the transaction closed on June 6. Reports describe the consideration as about $99.9 million in cash and common stock. The rounded $100 million figure is therefore the standard trivia answer, rather than a materially different estimate.

The deal was followed by a second major corporate change: MTV Games acquired Harmonix later in 2006. Activision retained the Guitar Hero business and eventually assigned development to Neversoft, which produced later installments including Guitar Hero III: Legends of Rock.