THQ: IPs Auctioned. Current Developments: Homeworld has gone to Gearbox

[Badnik Mechanic]

The following has happened within the last month...

THQ posts a net loss of just under $240 million!

To avoid being delisted from the NASDAQ, THQ split it's stock in several different ways. You can read the details here.

THQ has lost/sold the rights to make UFC games to EA. The sum is undisclosed.

THQ has closed its San Diego studio. It advises former employees to seek jobs elsewhere in the company... Or at EA! Erm... wow...

UFC 3 failed to break even despite selling 2 million units.

THQ is being investigated over misleading financial investors about UDraw, accusations include witholding information about sales and demand for the unit.

Today, THQ shuts down all production in Italy and Spain, it will now hire a distributor for it's games in these regions.

How is this company still running?

[Patticus]

How expensive was the UFC licence for them to hold? If the break-even point is around 2 million units and they sell almost that much but don't break even, I imagine it must have been extremely costly.

As for the rest, well, as long as Relic Games, as well as the developers of Darksiders and Metro, remain alive, they can shut everything else down as far as I'm concerned.

[Phos]

I hope Devil's Third makes it out and the Saints Row franchise ends up OK.

THQ dropped Devil's Third.

Apparently the company that made the engine they were using went under causing the cost of the game to jump significantly.

[Badnik Mechanic]

And then... this happened today.

THQ cancels Saints Row: Enter the Dominatrix.

ETD was supposed to be a stand alone Saints Row 3 DLC/Game. It was due for release in September however it's now been cancelled... the devs claim it will be put into the next main Saints Row game... however, this decision has estimated to give THQ a loss of around $20 million

[Patticus]

It gets better - the tentative title is apparently "The Next Great Sequel in the Saints Row Franchise".

It might be an even better name than Saints Row: The Third.

[PSI Wind]

I still don't understand the whole U Tablet thing

[Badnik Mechanic]

http://www.youtube.com/watch?v=yPLcZ5Rk3Lg

Gentlemen, it was a privilage playing your one good game tonight.

 

In the last hour THQ has filed for Bankrupcy Protection in the United States.

 

Edit: And just as I'm about to start one post tangent, it seems that Clearlake have stepped in to buy THQ's assets, they've got a lifeline, but from the sounds of it, this is the last dance. If this fails, THQ is going the same way Red Faction did.

 

 

AGOURA HILLS, Calif.--(BUSINESS WIRE)--

THQ Inc. (THQI), a leading worldwide developer and publisher of interactive entertainment software, today announced that it entered into an Asset Purchase Agreement with a “stalking horse bidder,” affiliates of Clearlake Capital Group, L.P., to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development. The sale will allow THQ to shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology.

To facilitate the sale, THQ and its domestic business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Delaware. The company’s foreign operations, including Canada, are not included in the filings. The company has obtained commitments from Wells Fargo and Clearlake for debtor-in possession (DIP) financing of approximately $37.5 million, subject to Court approval.

THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ’s first-day motions. All of the company’s studios remain open, and all development teams continue. The company remains confident in its existing pipeline of games. THQ maintains relationships with some of the top independent development studios around the globe. As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts.

“The sale and filing are necessary next steps to complete THQ’s transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ’s deep bench of talent,” said Brian Farrell, Chairman and CEO of THQ. “We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible.”

According to Jason Rubin, who joined THQ as President last May, “We have incredible, creative talent here at THQ. We look forward to partnering with experienced investors for a new start as we will continue to use our intellectual property assets to develop high-quality core games, create new franchise titles, and drive demand through both traditional and digital channels.”

Clearlake has agreed to serve as the “stalking horse bidder” for a Section 363 sale process, which allows other interested parties to come forward with competing bids. Aggregate consideration offered by Clearlake for the purchase totals approximately $60 million, including a new $10 million note for the benefit of the company's creditors. The company is asking the Court for a schedule to complete the sale process in about 30 days.

Consumers and retailers should see no changes while the company completes a sale. The new financing will support business operations throughout the period. THQ does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary Court approval.

As is the case after a Chapter 11 filing, THQ expects to receive notice from NASDAQ informing the company that its shares will be delisted from the exchange within nine calendar days of notification.

THQ is being advised by Centerview Partners LLC and FTI Consulting as its financial advisors and Gibson, Dunn & Crutcher as legal counsel. Clearlake is being advised by DLA Piper as legal counsel.

For additional information about THQ, please visit www.thq.com. For information regarding the Chapter 11 case, please visit www.kccllc.net/thq.

 

 

 

Source: http://finance.yahoo.com/news/thq-inc-secures-asset-purchase-185300188.html

 

Hey if we all chipped in, we could buy THQ!

[That Rucdose Guy.]

Sigh.. What a shame. I remember THQ published a couple of Sonic games for the GBA. It's a shame because I was looking forward to Stick of Truth and if THQ are filing for bankruptcy, then the quality's gonna drop a bit. Sigh..

[Carbo]

They made over five million off of the Humble Bundle (granted half of it being gone to charity and developers) and they're somehow in an even bigger pickle than before? Christ almighty this company is fucked.

[Patticus]

This really is terrible news, What's going to happen to Relic, Volition, 4A and Vigil? These are some of the best developers about today and their current projects are all at risk now. Dammit.

[Detective Shadzter]

This really is terrible news, What's going to happen to Relic, Volition, 4A and Vigil? These are some of the best developers about today and their current projects are all at risk now. Dammit.

Hogfather's just posted a press release saying they've been saved for now and all systems are still go as normal.

[Patticus]

Yeah I don't have a lot of faith that that deal is going to keep it afloat for long. At least games currently in-development should still see a release, but the IPs and studios will likely all get sold off as projects are completed, and I don't think I like what that'll mean.

Edited December 19, 2012 by Patticlaus

[Stacy]

Well.... that sucks! 

[Johnny Boy]

Looks like there's no coming back from a crisis like this. *sighs* It's been fun THQ, farewell.

Edited December 19, 2012 by Goddamn Batman

[Dobkeratops]

Yeah I don't have a lot of faith that that deal is going to keep it afloat for long. At least games currently in-development should still see a release, but the IPs and studios will likely all get sold off as projects are completed, and I don't think I like what that'll mean.

 

Nothing wrong with the studios being sold off as long as the staff can keep their jobs.

 

Well, they could be forced to do Kinect games but still beats unemployment, if only slightly.

[Patticus]

Nothing wrong with the studios being sold off as long as the staff can keep their jobs.

 

If any of the studios wind up as Activision or MS property, they'll be milked for all they're worth before being thrown in the trash. EA is probably liable to do something similar.

[Dobkeratops]

I concur, but still gives them more time to gradually apply for jobs at other publishers or start up small scale studios on their own. A temporary job is still a job you get paid for.

 

The industry's very, very competitive and a huge dump of professionals at once means the majority won't find a position. It also makes it harder for newcomers when the guy you're suddenly applying against has twenty pages worth of experience.

[Patticus]

Yeah, but Relic, Vigil, 4A... these are quality studios with excellent IPs! Are we to just expect these studios and their series' to continue at the same quality or better once their creative teams have been scattered to the winds?

[Detective Shadzter]

THQ: Games safe for now, bankruptcy a positive move
Homefront 2, Saints Row 4 and other titles still in development
http://www.computerandvideogames.com/384450/thq-games-safe-for-now-bankruptcy-a-positive-move/
 
Docs name new games from Left 4 Dead co-dev, Assassin's Creed lead
Multiple in-development THQ projects revealed via legal papers
http://www.computerandvideogames.com/384401/docs-name-new-games-from-left-4-dead-co-dev-assassins-creed-lead/

[Doctor MK]

Typical. I finally get into Darksiders 2 and the company behind it is on the verge of collapse. I want my threequel, dammit!

[Patticus]

Typical. I finally get into Darksiders 2 and the company behind it is on the verge of collapse. I want my threequel, dammit!

 

Not quite. Vigil is fine, it's THQ that's in trouble. Hopefully Vigil will end up with Warner Bros., Square-Enix, Nintendo or Ubisoft, and not one of those more dubious publishers.

[FourCartridge]

Speaking of which; An IGN article speculating on where THQ's assets may end up:

 

http://m.ign.com/articles/2012/12/20/where-will-thqs-games-and-studios-go

 

Of those, only Metro seems to be looking like it will get a good home. =( I know it might not end up true, but I thought it would be a good jumping off point for discussion.

Edited December 20, 2012 by FourCartridge

[Badnik Mechanic]

Anyone remember when Simon Jeffery used to be in charge of Sega and he said 'We want Sega to be the next THQ."

 

Scary isn't it.

 

Also I can't believe they're making a sequel to Homefront! Wasn't that one of the reasons why THQ are in this mess?

[Badnik Mechanic]

This comes from Kotaku so take this with a huge pinch of salt.

 

Warhammer: Dark Millenium has been cancelled.

 

This has had a lot of work already put into it! At one point this was a multiplayer game, it then got reduced to just a single player. And now it's outrightly cancelled! Christ, and this was one of the titles that people thought had a chance of giving them a good return!

 

To give you an idea how much money and time have gone into this. The game was announced in 2010!

[Phos]

No it went from an MMO to a more conventionally multiplayer game.  If I were to guess as to why it was canceled, When that aformentioned change was made they claimed it was partly because the game they were designing made more sense that way or something like that, but it seems that just realized that would be way too expensive, BUT I think they were basically lying and it was just an MMO with fewer players and all the terrible things that come with being an MMO.  That or maybe they've just lost the 40K license.  

 

It's just good to know that this was the reason why they didn't have Relic make another Space Marine.  

Anyone remember when Simon Jeffery used to be in charge of Sega and he said 'We want Sega to be the next THQ."

 

Scary isn't it.

 

Also I can't believe they're making a sequel to Homefront! Wasn't that one of the reasons why THQ are in this mess?

Homefront sold decently (Even though it was terrible), THQ just spent way too much money marketing it.

 

And if I'm being honest Sega's days basically seem basically numbered as well.  Let me put it this way: I don't know how long it's going to take but I don't see them coming back from their hard times.  They've been consistently unable to get any kind of return on most of their games and it's really their own fault.  

Edited December 21, 2012 by Phos