COMPANY PRESS RELEASE: THQ announced that it has completed its previously announced acquisition of digital entertainment creator Rainbow Studios. Rainbow Studios’ current PlayStation 2 development projects include Activision’s Matt Hoffman Pro BMX 2 and Lucas Arts’ Star Wars: Racer Revenge.
The studio also created ATV Off Road Fury for Sony, Splashdown for Infogrames and the Motocross Madness series for Microsoft.
As consideration for the transaction, THQ issued 858,203 shares of common stock. These shares are subject to adjustment pending the determination of Rainbow’s net book value. THQ also assumed existing Rainbow stock options providing for the further issuance of 106,259 shares of THQ common stock. Rainbow Studios is now a wholly owned subsidiary of THQ.
Industry veterans Mark DeSimone and Tony Sutterheim will continue to manage Rainbow Studios as President, Games and President, Animation, respectively.
Acquiring Rainbow further strengthens THQ’s network of internal development studios, said Jeff Lapin, vice chairman and COO, THQ. We look forward to leveraging their expertise in creating original action and racing game content, two of the biggest genres in console gaming.
Rainbow Studios is the largest studio in the southwest. Headquartered in Phoenix, Arizona, Rainbow is a true new media company with roots in the skills and production values of traditional media. Classically trained artists work alongside award-winning engineers to create and deliver great entertainment in all media. Rainbow’s cohesive team includes veterans of live action production, pioneers of CG and acknowledged leaders in advanced technology.