This acquisition represents the latest step in Activision Publishing's strategy to expand its global leadership position in the music-based genre. FreeStyleGames is currently developing localized downloadable content for the Guitar Hero franchise, as well as a yet to be announced new, intellectual property in the music genre.

"Activision Publishing is the undisputed leader in the music-based games and we see tremendous opportunity for continued growth, particularly in Europe," said Mike Griffith, President and CEO of Activision Publishing, Inc. "An important part of our European growth strategy is to work with local developers and provide music content that resonates with the market. FreeStyleGames has an award-winning team with a history of developing innovative and creative music-based games and they are uniquely positioned to help us expand our leadership in the genre."

"This is an exciting time for our company and great recognition of our success to date that Activision Publishing would look to welcome us to their studio roster," said Jamie Jackson of FreeStyleGames. "Our goal has always been to deliver the most compelling entertainment experiences, and with the infrastructure, support and financial resources of Activision Publishing, we will be able to set our goals even higher than they are today."

Under the terms of the acquisition agreement, FreeStyleGames has become a wholly owned subsidiary of Activision Publishing and the company's management team has signed long-term employment contracts with Activision Publishing. The studio will continue to be based in Leamington Spa, U.K. Financial terms of the agreement were not disclosed.