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Instead, Viacom's MTV Games unit has tapped game industry veterans Scott Guthrie, formerly of THQ Inc. (NASDAQ:THQI), and David Cox, formerly of Sony Corp. (NYSE:SNE), to oversee one of the most anticipated game releases of 2009: "The Beatles: Rock Band." Additionally, Viacom reportedly has tasked them with exploring any possible acquisitions for the unit, The Hollywood Reporter said. With Guthrie formerly being the executive vice president of troubled video game maker THQ, the possibility of doing a deal between THQ and MTV Games has certainly risen. The two companies know each other intimately as THQ has licensing agreements to publish games based on Viacom's Nickelodeon characters including Avatar, Back to the Barnyard and Sponge Bob Square Pants. The interest for expansion comes at an opportune time for
MTV Games, where valuations in the sector seem to favor buyers. Currently, THQ is trading in the lower range of its 52-week trading cycle at around $7 a share -- or about a third of its 52-week high. Guthrie told The Hollywood Reporter: "There are fire sales going on everywhere right now with different gaming companies shedding different assets. So particularly with a company like Viacom, which has a larger agenda is a very stable company, there are some opportunities to come in and value some of those assets and if they are undervalued, we certainly will review them and see if they make sense for us." THQ has struggled lately with weak sales, and with Guthrie on board at MTV he likely knows what THQ is willing to deal. THQ recently reorganized into three units of kids games, family and casual games, and online games. However, The Hollywood Reporter article explains MTV Games would likely try to test the acquisition waters and acquire a game or two or possibly a smaller company rather than do a gigantic deal like buying THQ. After all, Viacom is counting its pennies since it reported a 34% drop in profit to $177 million in April with cash of $259 million and debt of $7.4 billion.
Right now, MTV Games' cupboard is relatively bare with only the "Rock Band" game franchise in it. However, it has pulled a coup over its chief rival, Activision's "Guitar Hero," by winning the licensing rights to the Beatles. Additionally, Viacom has a two-year-old partnership with TV and film producer Jerry Bruckheimer for a game incubation studio, but his company hasn't released any gaming titles yet. So with these new executive hirings in the mix, expect MTV Games to get bigger with possibly a little help from THQ. - Gerald Magpily See paidContent post
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Video may have killed the radio star, but Viacom Inc. (NYSE:VIA) is not going to let video games kill it. 
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