Activision Pays $12m for Fellow Games Developer Neversoft.Entertainment software vendor Activision Activision, Inc. NASDAQ: ATVI is an American video game developer and publisher. It was the first independent developer and distributor of video games for gaming consoles, founded on October 1 1979. Inc said Monday that it has acquired Neversoft Entertainment Inc, a Los Angeles-based company that specializes in developing games for consoles. Activision will hand over 700,000 shares of common stock, valuing the deal at $12.3m, based on Friday's closing price of $17.50. Activision says the acquisition will enable it to take full advantage of the next-generation of console game
A console game is a form of interactive multimedia used for entertainment. systems. After closing, Neversoft will become a wholly-owned subsidiary of Activision. The transaction is being accounted for as a tax-free pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . In connection with the deal, key members of Neversoft's management team have signed long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. employment contracts with Activision. |
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