Activision powers up with Shaba Games buyout

Game-maker Activision Inc. Tuesday announced that it has acquired software developer Shaba Games LLC, the company that has helped it develop a number of hit games, in an all-stock deal.

Based on Activision's share price at the close of trading Monday, the deal is valued at US$7.7 million.

The acquisition is aimed at bolstering Activision's ability to develop games for next generation console gaming systems, Activision said in a statement.

Activision, located in Santa Monica, California, makes video games for a host of console systems including Nintendo Co. Ltd.'s GameCube and GameBoy Advance, Microsoft Corp.'s Xbox, Sony Computer Entertainment Inc.'s PlayStation and PlayStation 2 and PCs. Among the company's marquee titles are the "Tony Hawk Pro Skater" and "Spider-Man" series, as well as "Return to Castle Wolfenstein."

Shaba Games worked with Activision on "Tony Hawk Pro Skater 3" and "Matt Hoffman's Pro BMX." The company was founded in 1997 and has 29 full-time employees at its Sausalito, California, headquarters.

Under the terms of the deal, Shaba's equity holders will receive 258,621 shares of Activision common stock, Activision said in a statement. Those shares were each worth $29.75 at the close of trading Monday. An additional 68,965 shares could be granted to Shaba stakeholders if certain performance requirements are met in coming years, Activision said.

Shaba will become a wholly owned subsidiary of Activision, with key management and development personnel signing long-term contracts with Activision, Activision said. Activision does not expect the deal to affect its financial forecast for fiscal years 2002 or 2003.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sam Costello

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?