MTV acquires Harmonix Music Systems for $175 million - a smart move?
Julia Ruiz
Sep. 22, 2006

Can videogame maker best known for its popular Guitar Hero title add to the bottom line of MTV? MTV acquires Harmonix Music Systems for $175 million - a smart move?

Harmonix is a videogame development company based in Cambridge, MA. The company specializes in music-based games and is renowned for groundbreaking design innovation. Harmonix was founded in 1995 by Alex Rigopulos (CEO) and Eran Egozy (CTO), who met while working in the computer music group at the MIT Media Laboratory. Alex and Eran formed Harmonix initially not to develop videogames, but rather to invent new ways for non-musicians to experience the unique joy that comes from making music.

"We are very excited to combine our unique assets in the music and gaming space with one of the most recognized brands in the music world. We look forward to continuing to create innovative ways for people to enjoy music," said Alex Rigopulos, Harmonix's CEO.

Experts say it was a bad move by MTV. The price paid was too high and integrating business models will be tough.

However, "The acquisition of Harmonix advances MTV Networks'' strategy of connecting with target audiences by creating immersive, multi-platform environments that extend to every device they use," said Judy McGrath, Chairman and CEO, MTV Networks. "Harmonix is an innovator in giving audiences new and dynamic ways to interact with music, and I couldn''t be more excited to welcome the company into MTV Networks'' strong portfolio of multi-platform brands."

MTV acquires Harmonix Music Systems for $175 million - a smart move?
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