ZeniMax Media has closed a USD150m investment by private equity firm Providence Equity Partners in convertible preferred stock of the company.

The proceeds will be used to fund additional growth through increased game development, expanded publishing operations, and strategic acquisitions.

The new investment by Providence supplements an earlier investment of USD300m made by the firm in October 2007.

ZeniMax Media was founded in 1999 by Robert A. Altman, its chairman and chief executive, and through its wholly owned subsidiary, Bethesda Softworks, publishes interactive entertainment content for gaming consoles. 

"Though a number of prominent private equity firms offered to invest with us on attractive terms, we chose Providence as they have proved to be an ideal partner for us over the past 3 years as we built our business. We believed that furthering that relationship was the right course for us. Providence shares our strategic vision for the Company and is excited by the opportunity to help us strengthen a position of leadership in this industry," says Altman.

"We are pleased to increase our investment and support the continuing growth of what we consider to be the best managed company in the videogame industry," says Michael Dominguez, a managing director of Providence. "Since our original investment in 2007, ZeniMax Media has tripled the size of its development portfolio and assembled an extraordinary library of major game franchises, along with some of the best development talent in the world. Its valuable proprietary technology and focus on high quality development are driving growth. We look forward to working with Robert to continue building ZeniMax Media over the long-term as an innovator and leader in the global video game market."

Dominguez will remain on the company's board of directors, which is currently led by Altman and includes ZeniMax Media president Ernest Del, Leslie Moonves (president and chief executive of CBS), Harry E. Sloan (chairman Metro-Goldwyn-Mayer), Robert S. Trump (president of Trump Management), film and television producer Jerry Bruckheimer, and Hall of Famer Cal Ripken, Jr.