MTV Buys Music Game Firm Harmonix

MTV Networks on Friday announced an agreement to acquire Harmonix Music Systems, the company behind the popular Guitar Hero game for the PlayStation 2. Harmonix joins a number of other companies recently brought into the MTV fold.

Last month, MTV purchased Atom Entertainment, including its Atom Films, Shockwave and AddictingGames properties. That acquisition followed purchases of entertainment brands XFIRE, Y2M, GameTrailers.com, IFILM, and Neopets.

MTV Networks is endeavoring to become a leading force in casual gaming, with 50 million gamers playing more than 400 million games per month. The acquisitions further expand the company's online multimedia offerings, now offered across 24 channels for broadband users.

Now, it seems, MTV is ready to take the leap into more full-fledged console games. Guitar Hero is one of the top selling PlayStation 2 games this year, and has won a handful of awards.

MTV had already forged a partnership with Harmonix last year to integrate the Guitar Hero brand into a number of its online and television properties. Version 2 of the title, in which players strum an actual guitar along to a virtual rock concert on-screen, is slated to debut this fall by publisher Activision.

"The acquisition of Harmonix will deepen MTV's connection to its audience via on-line, mobile and console music gaming, and expand the relationship with both labels and artists through the creation of games based on classic songs as well as future album releases," said MTV President Christina Norman.

The deal, which includes a $175 million cash payment and incremental earn-out payments through 2008 for shareholders, is expected to close in the fourth quarter. Harmonix will fall under MTV Networks' Music and LOGO Enterprises division.