The companies have agreed that their initial collaboration will be based on TDK Mediactive's existing license to the sequel to DreamWorks Pictures' blockbuster Academy Award-winning feature film "Shrek."

Additionally, TDK Mediactive and Activision have agreed to co-develop and co-publish a yet-to-be-announced title originating from Activision's portfolio of video game brands.

"The agreement with TDK Mediactive fits perfectly with Activision's strategy of developing and publishing games for all video platforms based on proven, brand-name properties," said Ron Doornink, President and COO of Activision, Inc. "And what a property to collaborate on. 'Shrek' reinvented the traditional fairy tale with its colorful characters, sarcastic wit and rich computer-generated animations, and today is one of the premier animated film and video game franchises. We are thrilled to extend our existing Activision Value relationship with TDK Mediactive into next-generation platform games, and believe the properties we intend to share will form the beginning of a very powerful relationship."

"Our agreement is a win-win opportunity for TDK Mediactive and Activision," said Vincent Bitetti, TDK Mediactive CEO. "It unites the substantial strengths and worldwide reach of both our organizations while serving to both expand and diversify both of our businesses. In teaming with Activision, we are substantially expanding the market and brand 'fire power' we can collectively bring to games, leading off with our larger-than-life 'Shrek' franchise. We are confident this partnership will lead to even greater success with the 'Shrek' sequel games."

"TDK Mediactive was early to recognize and champion the value of the 'Shrek' video game franchise and did a phenomenal job in managing the property," said Brad Globe, head of DreamWorks Consumer Products. "We view their teaming with Activision as a significant boost for 'Shrek,' as under their combined effort and reach we expect the 'Shrek' franchise will achieve even greater heights of interactive game play and retail performance."