Struggling publisher files for Chapter 11 bankruptcy and has entered into asset purchase agreement with bidder to sell nearly all of company's assets, including four wholly-owned studios and games.
Beleaguered Saints Row publisher THQ has filed for Chapter 11 bankruptcy, the company announced today. The company has entered into an asset purchase agreement with a bidder to acquire "substantially all of the assets of THQ's operating business." This includes THQ's four wholly-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," the company said in a statement.
THQ's day-to-day operations will not be affected during the sale period, the company said. Every THQ studio remains open and development on all projects is unaffected. No layoffs are expected to be a result of the filing. Employees will continue to work on their usual schedules and will receive their previously agreed upon compensation and benefits.
THQ's international operations, including those in Canada, are not included in the filings. Additionally, the company said it has obtained about $37.5 million in financing commitments from lenders Clearlake and Wells Fargo. These investments are subject to court approval.
"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 THQ CEO Brian Farrell in a statement. "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."
Clearlake estimates THQ's assets are worth approximately $60 million, which includes a new $10 million note for the benefit of THQ's creditors. THQ expects to complete to sale process in the next 30 days.
"We have incredible, creative talent here at THQ," new THQ president Jason Rubin said. "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."
THQ has a range of games in development. These include Saints Row 4, Homefront 2, Metro: Last Light, South Park: The Stick of Truth, Company of Heroes 2, and an unannounced project from former Assassin's Creed developer Patrice Désilets at the company's Montreal studio.
THQ stock will be delisted from NASDAQ in nine days.
Hopefully EA won't end up buying them. I shudder to think what would become of great series such as Dawn of War, Metro, Saint's Row and Darksiders if they did. Probably half-assed watered down generic action games, if any of EA's latest sequels are anything to go by.
I really hope THQ doesn't go under. I really want Metro: Last Light and Homefront 2 to come out and I would love to see sequals to those to games as well. If THQ goes under I hope whoever buys the assests specifically buys those two, but I really hope they don't go under in general. To many Nickelodian, Wrestling, and crappy movie tie in games. I hope this is a lesson to THQ and other publishers. Activision better watch out with their crappy movie tie ins.
THQ - too many yearlys - and way too many Wrestling and MMA titles.
Saints Row 3 was a good title and worth publishing though.
well im definitely gonna be supporting them next year most likely by getting last light and south park. Idk about homefront 2 whenever that comes out as I never played the first. Saints row 4 maybe.. it's kinda weird I kinda like saints row, but not GTA lol surprisingly :o
@IceJester45 Yep. This is pretty bad, but it's something we all knew was coming. I do hope they can pull it together with some restructuring.
I hope THQ makes it through this. I'm not as big a fan of theirs as I am of, say, Rockstar or Valve, but they produce some good games and aren't as blatantly exploitative of the consumer as EA or Activision. They're not guilt free either (look at the amount of shovelware DLC for SR3) but I hope this is the beginning of a good turnaround for them.
I only like a few of THQ's offerings, but they have been around so long and more recently been struggling. It's kind of like watching a wild animal escape being eaten.
I can't help but rout for little fella
People really do need to learn to actualy read MORE then just the headline!!!
Im mainly talking bout the bit where it says "THQ's day-to-day operations will not be affected during the sale period, the company said. Every THQ studio remains open and development on all projects is unaffected. No layoffs are expected to be a result of the filing" .....................
@blakeney "The company has entered into an asset purchase agreement with a bidder to acquire "substantially all of the assets of THQ's operating business." This includes THQ's four wholly-owned studios and games in development."
Whoever purchased these assets, essentially, can do whatever they want with them. Even cancel future projects and or close down studios. Basically they pretty much own THQ. At least thats what it looks like it says to me.
And, TaintedMindz, yes you are correct that the new owner can do what they want...but if they are spending upward of 60 million, and then can all the assets, how they going to get their money back?! They are buying the studio and assets (games in development) because they see it as a money maker. It's true though that some of the less popular titles could get canned. But those popular ones are as safe as houses...I would say :)
I'm a Darksiders fan and even I knew that was never going to happen. The second game was never going to sell enough copies even to ensure Darksiders 3.
this is sad news THQ is probably my favourite publisher out there
all the games they have in development look pretty awesome to, its sad they have run out of money before getting the chance to release them
and if Relic ends up at EA and im forced to buy Company of Heroes 2 from Origin...............
Shit. Well I guess now we have to worry about who will ruin or bury their franchises; EA or Activision
"No layoffs are expected to be a result of the filing. Employees will continue to work on their usual schedules and will receive their previously agreed upon compensation and benefits."
Well at least that's good news, if it's true.
THQ, one great company get to filed bankrupcy while the stinking Activision an EA still sit their fat ass on their throne!?!? FUCK!
@WillyChong they can still "sit on their throne" as you say because they own IP's like Fifa (EA) and Call of Duty (Activision) for example and as much as people moan about said franchises they are big sellers not to mention other franchises they own
the sad truth is THQ really hasn't done anything of note lately they have some interesting upcoming games but that's not enough a lot of the games they have released over the last few years have been either mediocre or just plain crap and in this day and age with the way gaming is now that's not gonna cut it
@MajinSquall Darksiders 2 and Saints Row 3 is not crap or mediocre.
@renato_passos I never played Dawn of War or Metro. So, I can't comment on those. It sucks that a lot of people didn't like Metro or Darksiders. THQ needs to get a way bigger advertising budget. If it did that, it could sell millions of units. It's too bad that THQ can't sell games in November. It worked well for Saints Row. Problem is COD and Assassin's Creed keep taking all the sales.
But maybe that's the problem: great, creative games that are *not* entirely clones (and DoW has no counterpart outside of Relic) and not "real life" (yeah. right.) FPS. It seems the masses didn't like them though. And that's very unfortunate, indeed.
Wait, what? I thought that THQ was still going strong, with Saints Row and whatnot. Too bad, I guess. Soon enough, only the big companies are going to remain.
WHAT?!? Then what is going to happen to Company of Heroes 2!?!? Don't let it die!!! NOOOOOOOOOOOOooooooooooooooooooooooOOOOOOOOOOOOOOOooooooooooooooo
The old THQ was great, but ever since they piled a million DLC into Saints Row 3 to try and milk customers to the max, I've disliked them and have not purchased anything else from them. I hope other publishers take note.
That's sad to hear. THQ is a good company, they just made some poor moves. Sucks to see them going this way.
Even though the term 'bankruptcy' has an extremely negative connotation, I'm very hopeful for the future of THQ. They've secured financial support for current and future projects without having to lay off any employees or compromise the integrity of their company.
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