Activision Acquires Neversoft

Activision announced on Monday that it has acquired Los Angeles-based Neversoft Entertainment. Known for its development work on titles like Apocalypse and the just-released Tony Hawk's Pro Skater for the PlayStation, Neversoft now becomes a wholly owned subsidiary of Activision, and Neversoft shareholders will receive approximately 700,000 shares of Activision common stock.

"This move is consistent with our strategy to acquire industry-leading developers and the technical and design talent necessary to ensure high-quality future product flow,'' said Ron Doornink, president of Activision. "Neversoft has a proven track record of producing successful games and has developed one of the industry's strongest console technologies that can continue to power our growth in the console arena.''

Neversoft is currently developing Spider-Man for the PlayStation, which is slated for release in 2000.

"We feel that cementing our relationship with Activision was simply the best thing we could do for the Neversoft team at this point in the life of the company,'' said Joel Jewett, President of Neversoft Entertainment. "These guys understand what it takes for a developer to make a great game, and thus know how to give us the support we need to do that. Looking to the future and the advent of new technologies, being part of the Activision team will allow us to turn out the best games we can deliver.''