THQ files for bankruptcy

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  • thenastypasty 19 Dec 2012 19:04:19 5,198 posts
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    I think this has being coming for a while

    Edited by thenastypasty at 19:04:52 19-12-2012
  • Gambit1977 19 Dec 2012 19:05:56 10,382 posts
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    Although it's no surprise, it's sad, and reminds me of the demise of Acclaim.
    Just shows now, without the support of at least one heavy hitter in your arsenal, there's little chance of survival.
  • MrTomFTW Moderator 19 Dec 2012 19:09:44 39,271 posts
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    Shit, didn't even make it to 2013 eh?

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  • RobTheBuilder 19 Dec 2012 19:10:36 6,521 posts
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    Sad. Even the humble bundle couldn't save them
  • agparrot 19 Dec 2012 19:13:08 11,903 posts
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    It is the Chapter 11 bankruptcy though, which as pointed out in the Kotaku comments isn't the same as being liquidated, it allows for restructuring.

    Restructuring

    as opposed to

    Dead and Buried

    So it doesn't necessarily mean they are going away.
  • Whizzo 19 Dec 2012 19:14:53 43,268 posts
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    This gives them some breathing room to look for a buyer, to think if it wasn't for uDraw this probably would never have gone so badly wrong.

    Whoever thought spending all that money on a 360/PS3 version shouldn't be responsible for anything more than a roadside burger van in future.

    This space left intentionally blank.

  • Vortex808 19 Dec 2012 19:16:52 7,439 posts
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    I hope it is just restructuring and this doesn't affect Metro Last Light coming out!
  • Cappy 19 Dec 2012 19:18:39 12,086 posts
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    Sadly it's all part of the endgame some in the business envisage, that's why the big fish are prepared to hang on, even lose money because they're banking on a last man standing scenario where just a few big publishers remain completing the transition to a Hollywood style 'mature' industry where just a few players control big budget releases with a low budget indie scene underneath them.

    EA, Activision, Ubisoft on the Western side, with maybe Square Enix and Capcom swallowing the smaller fish on the Japanese side.

    I wouldn't be surprised to see some more totally unexpected buyouts in the next few years. Konami must be a tempting target, plenty of valuable IP that they don't know what to with and they've spent the whole generation floundering. If the public ever lose their taste for Metal Gear they're stuffed.
  • thenastypasty 19 Dec 2012 19:21:51 5,198 posts
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    Press release below:

    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.

    Edited by thenastypasty at 19:22:14 19-12-2012
  • Rusty_M 19 Dec 2012 19:24:33 4,864 posts
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    Now who will make wrasslin games and Mortal Kombat?

    The world is going mad. Me? I'm doing fine.
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  • neilka 19 Dec 2012 19:24:44 16,444 posts
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    +3 Bench of Talent

    BAAANG!!!!! EXPLOTION!!!!!

  • neilka 19 Dec 2012 19:25:03 16,444 posts
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    I don't think THQ ever made Mortal Kombat.

    BAAANG!!!!! EXPLOTION!!!!!

  • Rusty_M 19 Dec 2012 19:29:02 4,864 posts
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    You're right. Total brainfart

    The world is going mad. Me? I'm doing fine.
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  • griff_dai 19 Dec 2012 20:46:36 453 posts
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    rodpad wrote:
    More importantly, what does that mean for the upcoming South Park RPG?
    immediately my concern.....I hope this don't see the demise of Obsidian.....
  • oceanmotion 19 Dec 2012 21:21:20 16,079 posts
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    They will probably make the most of the games that are nearing completion, still good money to be made if they can work finances to the right IP and forget the rest completely.
  • Dirtbox 19 Dec 2012 21:29:39 78,757 posts
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    I wish them the best, they're one of those rare publishers that aren't complete wankers and while their output might not be sterling across the board, it's different enough and interesting enough to be a breath of fresh air in this era of sterile endless series AAAAAA blockbuster bollocks.

    +1 / Like / Tweet this post

  • HelloNo 19 Dec 2012 21:38:23 1,220 posts
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    It sounds like their current projects will be OK judging from the article, unless I'm missing something. It's encouraging they found a buyer like that.
  • Clive_Dunn 19 Dec 2012 21:55:28 4,784 posts
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    @Dirtbox

    Sadly THQ have a terrible reputation in the industry for shitting on their employees from a great height time after time. By all accounts a terrible place to work although ( insert legal disclaimer here etc ) I can't verify this first hand.

    They were doomed after Homefront failed, it was either the next COD or bust. Fair play to them for taking the risk rather than drawing it out over years whilst the execs top up their pensions as some publishers are doing.
  • DUFFMAN5 20 Dec 2012 07:06:42 15,205 posts
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    Vortex808 wrote:
    I hope it is just restructuring and this doesn't affect South Park coming out!
    Fixed.
    I have such a bad feeling that we will not see South Park TSoT in a complete retail release.

    "Duffman the grey is thrusting in the direction of the problem! Oh, yeah!"

  • mcmonkeyplc 20 Dec 2012 07:31:53 39,508 posts
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    Whats that coming over the hill?! Is it EA, IS IT EA?!

    Come and get it cumslingers!

  • Deleted user 20 December 2012 07:39:49
    They should have made another Scooby Doo game. That might have saved'em.
  • DUFFMAN5 20 Dec 2012 07:52:42 15,205 posts
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    blacksea wrote:
    They should have made another Scooby Doo game. That might have saved'em.
    They would have done, if not for those pesky kids...

    "Duffman the grey is thrusting in the direction of the problem! Oh, yeah!"

  • Deleted user 20 December 2012 08:11:47
    Strange: the developer and publisher of Sphinx and the Cursed Mummy (Eurocom and THQ respectively) have gone bankrupt in the same month.

    A pity; Sphinx was one of my favourite games - and now there's little chance of it having a sequel.
  • Dougs 20 Dec 2012 08:22:56 69,004 posts
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    I missed that Eurocom had gone under. :(
  • Dirtbox 20 Dec 2012 08:27:07 78,757 posts
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    Clive_Dunn wrote:
    @Dirtbox

    Sadly THQ have a terrible reputation in the industry for shitting on their employees from a great height time after time. By all accounts a terrible place to work although ( insert legal disclaimer here etc ) I can't verify this first hand.

    They were doomed after Homefront failed, it was either the next COD or bust. Fair play to them for taking the risk rather than drawing it out over years whilst the execs top up their pensions as some publishers are doing.
    Ah, yeah perhaps. I did a little work for them not so long ago and they were fine though, so mileage probably varies.

    +1 / Like / Tweet this post

  • Mr-Brett 20 Dec 2012 10:35:40 12,877 posts
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    I've heard rumours that working for Volition can be pretty brutal but they were just rumours and working for any developer can be brutal at times so who knows.

    So no crazy speculation on who the buyer is then? I'll start:
    Activision are the buyer, Company of Heroes to be re-branded as Call of Duty: Heroes, Metro 2033 to be re-branded as Call of Duty: Apocalypse and Saints Row to be re-branded as Call of Duty: Street.

    Edited by Mr-Brett at 10:35:58 20-12-2012

    Level 37 Social Justice Warrior

  • MrTomFTW Moderator 24 Dec 2012 13:28:41 39,271 posts
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    According to a couple of wrestling sites, THQ owes the WWE $45 million.

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  • JoeBlade 24 Dec 2012 13:46:10 2,614 posts
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    MrTomFTW wrote:
    According to a couple of wrestling sites, THQ owes the WWE $45 million.
    I noticed the word "Edge" a couple of times in that article, time to put Tim Langdell on the case.

    Who knows, it might get THQ out of their debt :p
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