Video game publisher Activision Inc. said it would buy game developer Treyarch Invention for as much as about $20 million in stock in a move to bolster its in-house game development.
Santa Monica-based Treyarch has developed a number of games for Activision, including “Tony Hawk’s Pro Skater 2" and “Spider-Man” for Sega Corp.'s Dreamcast game system. The company employs 140 people.
Investors in closely held Treyarch would receive 545,974 shares of Activision and as many as an additional 224,077 over several years depending on performance criteria, Activision said. That would value the deal at as much as $19.8 million based on Activision’s Tuesday closing share price of $25.75.
Activision shares rose $4.06 to $29.81 on Nasdaq.