Viacom's (NYSE:VIA-B) latest filing with the Security and Exchange Commission revealed that the shareholders of Harmonix, the developer of "Rock Band," a popular video game that competes with "Guitar Hero," could end up with over $200 million in profits if they meet certain performance goals by the end of 2008. Viacom says it has $208.7 million put aside to make the payout if the target is met.
It's projected that to collect the money, "Rock Band" would have to generate about $600 million in sales in 2008; something very reachable based on early sales figures. They sold over 1.1 million bundled units between November 20 and December 31.
So far the game has brought in about $200 million, despite a small U.S. distribution. They'll increase the distribution domestically, as well as worldwide over 2008. That should just about guarantee reaching the targeted goals.
Co-founders and principals of Harmonix, Eran Egozy and Alex Rigopulos, are set to rake in a lot more than they received when selling the company to Viacom in October of 2006 for $175 million.
Some analysts think Viacom may generate about $400 million yearly over the next five years.
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