Activision announced the acquisition of Sausalito, CA-based Shaba Games, which is currently developing Shaun Murray's Pro Wakeboarder for the PS2, Xbox, and GameCube.
Shaba and Activision previously worked on Mat Hoffman's Pro BMX and Tony Hawk's Pro Skater 3 for the PSX, but Shaba has developed titles for other publishers as well, including Razor Freestyle Scooter for Crave and Grind Session for Sony. Under the terms of the agreement, Shaba has become a wholly owned subsidiary of Activision. Shaba's equity holders received 258,621 shares common stock, valuing the deal at approximately $7.4 million. Up to 68,965 additional shares of Activision common stock also may be issued to Shaba's equity holders over the course of several years, depending on the satisfaction of certain performance requirements and other criteria. As part of the transaction, Shaba's management team and key employees have signed long-term employment contracts with Activision. Activision does not expect this transaction to affect its previously announced revenue and earnings per share guidance for the fiscal year ended March 31, 2002 or for fiscal year 2003.
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