70,000,000 For 007: More Details of James Bond Deal Revealed
We told you earlier that Activision recently acquired a license for the use of James Bond IP (Intellectual Property). Now here’s some new info on the deal. Although of course not all the details have been made available to the public, industry sources have said that Activision paid the $70 million up-front to MGM Studios to secure the license agreement that will allow Activision to create a James Bond game for each year of the contract’s seven-year duration. The initial $70 million that Activision paid to MGM will then be used as credit against the royalties owed to MGM Studies by Activision for profits made on these Bond game titles. As you can see, this investment practically pays for itself (for Activision).
Industry analyst Michael Pachter of Wedbush Morgan Securities commented that compared to other recent licensing deals, the Activision James Bond deal appeared to be “quite reasonable”. He also added that Activision probably estimates to generate anywhere from $80-$100 million in annual sales from the new Bond games.
We told you earlier that Activision recently acquired a license for the use of James Bond IP (Intellectual Property). Now here’s some new info on the deal. Although of course not all the details have been made available to the public, industry sources have said that Activision paid the $70 million up-front to MGM Studios to secure the license agreement that will allow Activision to create a James Bond game for each year of the contract’s seven-year duration. The initial $70 million that Activision paid to MGM will then be used as credit against the royalties owed to MGM Studies by Activision for profits made on these Bond game titles. As you can see, this investment practically pays for itself (for Activision).
Industry analyst Michael Pachter of Wedbush Morgan Securities commented that compared to other recent licensing deals, the Activision James Bond deal appeared to be “quite reasonable”. He also added that Activision probably estimates to generate anywhere from $80-$100 million in annual sales from the new Bond games.
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