Viacom Ordered To Pay Out $299M To Harmonix After Losing Lawsuit

Harmonix-Viacom-$299M

Back in 2006, MTV Networks, a subsidiary of Viacom, purchased Harmonix for $175M. Viacom ended up selling the studio in December of 2010, but the terms of MTV’s initial acquisition of Harmonix included ‘earn-out’ payments be made to Harmonix’s former stockholders depending on the studios performance in 2007 and 2008.

In 2007 Viacom paid bonuses of $150M to Viacom, but the company later determined that it owed the former stockholders nothing in 2008, and even sought a refund of the earlier payment made in 2007. The two parties went to an arbitration agency to calculate the net amount owed to Harmonix based on the earlier ‘earn-out’ agreement. The agency deemed that Viacom owed an additional $383M and Viacom agreed to pay $84M of that amount to settle the 2007 bonuses, but the companies later went to court over the remaining $299M for the 2008 payouts.

Yesterday, after a year long court dispute a decision was made in favor of Harmonix, and Viacom has now been ordered to pay the remaining $299M to Harmonix.

Source: Polygon

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Dylan Zellmer

Dylan splits time between games journalism, designing video games, and playing them. Outside of his deep involvement in the games industry, he enjoys It’s Always Sunny in Philadelphia, Shameless, A Song of Ice and Fire, fitness, and family.
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