MadCatz to begin shipping GameShark products in March. Get the juice right here...
Mad Catz Acquires Industry Leading GameShark Brand From Interact For $5 Million
January 23, 2003
Mad Catz Acquires Industry Leading GameShark Brand From Interact For $5 Million; Acquisition Will Ensure Continuity of Supply
SAN DIEGO--(BUSINESS WIRE)--Jan. 23, 2003--Mad Catz Interactive, Inc. (AMEX/TSE: MCZ), the world's leading third party video game accessory manufacturer, announced today that, effective immediately, it has acquired the rights to the GameShark brand and the www.gameshark.com web site URL from InterAct, a subsidiary of Recoton Corporation (Nasdaq: RCOT) for $5 million (U.S. dollars).
GameShark is the industry leader in video game enhancement software, which enables players to take full advantage of the secret codes, short cuts, hints and cheats incorporated by video game publishers into their game offerings. In the twelve month period ended December 31, 2002, GameShark generated revenues in excess of $30 million.
Mad Catz anticipates shipping GameShark products powered by an extensive range of software cheats and hints in March, ensuring continuity of supply at retail locations. The Company has also assumed the management of the highly popular GameShark web site, one of the highest traffic gaming sites on the Internet.
Commenting on the acquisition, Morris Perlis, Mad Catz Interactive, President and CEO, noted, "The GameShark acquisition is attractive and significant to Mad Catz for several reasons. First, it enables us to increase the breadth of high-quality offerings available to leading retailers and the gaming community. Second, it further strengthens our position as the leading third party accessories provider in the world, as GameShark is one of the most popular interactive entertainment accessories among consumers. Finally, we believe the acquisition supports our goals for margin enhancement and financial growth. We are delighted to welcome GameShark to the Mad Catz family of products."
Darren Richardson, President and COO of Mad Catz Inc., added, "GameShark is an excellent strategic fit with Mad Catz as it is the undisputed brand leader in video game enhancements and will benefit from our position as the leading third party designer, manufacturer and distributor of video game accessories. In addition, the GameShark.com web site provides Mad Catz with a significant marketing vehicle which reaches a highly targeted gaming audience. We look forward to developing and offering new GameShark products which extend the solid reputation of the brand while incorporating the same level of innovation, value, design, and quality to our new video game enhancement offerings, that have made Mad Catz the category leader in third party accessories."