Graphix Zone to Acquire L.A. Game Maker Inscape

Graphix Zone Inc., a publisher of entertainment CD-ROMs, said it will enter the computer game business by acquiring Inscape, a Los Angeles-based game company.

Financial terms of the deal were not disclosed, but Inscape is to operate as a division of Graphix Zone. Inscape was a partnership of several large entertainment companies, including HBO, Warner Music Group and Nash New Media. Those partners will now hold minority interests in Graphix Zone, the company said.

Inscape executive Rob Sebastian will serve as vice president of marketing at Graphix Zone, and another Inscape executive, David Boss, will also join the Irvine-based company as vice president and general manager. Graphix Zone executives said Inscape’s creative team will also stay with the company under the new operating structure.

The deal is part of a flurry of acquisitions and mergers in the multimedia industry over the past year. The acquisition is “designed to build the critical mass we believe is necessary to operate in today’s multimedia marketplace,” said Ron Posner, chairman of Graphix Zone.

Inscape’s recent game titles include Bad Day on the Midway and The Dark Eye.