Activision Acquires Rest Of Gray Matter Interactive
SANTA MONICA, Calif. -- Activision Inc. said it exercised its option to acquire the remaining 60% equity interest in Gray Matter Interactive Studios, the developer of computer game Return to Castle Wolfenstein.
Under the terms of the deal, Gray Matter will receive 133,690 shares of common stock and become a wholly owned unit. Shares of Activision were at $24.01 at 4 p.m. Friday, valuing the deal at $3.2 million.
Amid a slowing economy, consumers are still snapping up games. In particular, last year's launches of Microsoft Corp.'s Xbox and Nintendo Co.'s GameCube in the U.S. helped to boost consumer interest.
Activision said the acquisition "solidifies" the company's position as a developer of first-person action games.
Ron Doornink, president and chief operating officer of Activision, said in prepared remarks: "Gray Matter's proven track record ... is aligned with Activision's strategy to acquire companies with a history of creating high-quality products."
Gray Matter is a Los Angeles game developer. Activision said Drew Markham has signed a long- term employment contract with Activision and will continue to manage Gray Matter studios.Other key employees also have signed long-term employment contracts with Activision, the company said.
Activision doesn't expect the purchase to affect its previously announced revenue and earnings guidance for the fiscal year ended March 31 or the following year.