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BUSINESS ACQUISITIONS AND CONSOLIDATION
12 Months Ended
Mar. 31, 2011
BUSINESS ACQUISITIONS AND CONSOLIDATION  
BUSINESS ACQUISITIONS AND CONSOLIDATION

5.     BUSINESS ACQUISITIONS AND CONSOLIDATION

In prior years, we consummated the acquisitions described below, which largely reflect our strategy to diversify our business by adding experienced development studios, intellectual properties and talented personnel resources to our existing infrastructure. The acquisitions were not considered to be material to our Consolidated Statements of Operations, individually or in the aggregate. The results of operations and financial positions of these acquisitions are included in our Consolidated Financial Statements from their respective acquisition dates forward and therefore affect comparability from period to period. During the fiscal years ended March 31, 2011 and 2010, five months ended March 31, 2010 and fiscal years ended October 31, 2009 and 2008, we paid contingent consideration in cash of $1,000, $6,804, $991, $5,813 and $3,375 for our prior year acquisitions. During the fiscal year ended March, 31 2011, we paid $2,000 by issuing 192,826 shares of our unregistered common stock as contingent consideration for our prior year acquisitions.

Acquired Business   Acquisition
Date
  Cash and
Development
Advances
Paid
  Value of
Stock
Issued
  Goodwill
Recorded on
Acquisition
Date
  Identified
Intangible
Assets
  Contingent Consideration

Mad Doc Software LLC

  March 2008   $ 4,715   $ 1,353   $ 4,617   $ 1,275   Up to $15,000 payable in cash or stock, based on meeting certain employment provisions and future product sales.

Illusion Softworks

 

December 2007

   
5,033
   
27,875
   
24,901
   
8,200
 

Up to $10,000 based on future product sales.

In March 2008, we acquired the assets of Rockstar New England, formerly known as Mad Doc Software LLC ("Rockstar New England"), an independent development studio in North America and developer of the Bully franchise. Total consideration paid upon acquisition was $6,068, consisting of $3,740 in cash, 53,033 shares of our unregistered common stock and $975 of development advances paid prior to the acquisition. The terms of the transaction also include additional contingent deferred payments of up to $15,000 payable in cash or stock, based on meeting certain employment provisions, the release of several titles, and achievements based on sales of specific titles. The goodwill recorded in connection with this acquisition is deductible for tax purposes.

In December 2007, we acquired all of the outstanding capital stock of 2K Czech, formerly known as Illusion Softworks, a.s. ("2K Czech"), the Czech Republic developer of the Mafia video game franchise. The acquisition reflects our strategy to add high-value intellectual property and development studios to our portfolio. Total consideration paid upon acquisition was $32,908, consisting primarily of 1,496,647 shares of our unregistered common stock and $4,645 of development advances paid prior to the acquisition. The terms of the transaction also include additional contingent deferred payments in cash and stock of up to $10,000, which is expected to be allocated to purchase price when the conditions requiring their payment are met. The goodwill recorded in connection with this acquisition is not deductible for tax purposes.