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Warner one of five buyers interested in THQ – report

Saturday, 5th January 2013 14:25 GMT By Stephany Nunneley

Warner Bros. Interactive has been cited as a possible buyer for THQ assets, according to a report coming out of the firm’s US Bankruptcy Court proceedings in Delaware on January 4.

According to Distressed Debt, five strategic buyers are interested in acquiring various parts of the embattled publisher, while others are interested in it as a whole.

Lawyers representing Warner Bros. were present during Friday’s proceedings, stating there was “a team ready to complete due diligence if more time is allowed.”

Investment firm Clearlake Capital is currently waiting for stockholder and court approval to purchase THQ, but stockholders argued earlier this week that the 30-day approval window for Clearlake’s purchase wasn’t adequate enough to allow other, potential bidders to submit offers.

Judge Mary Walrath did not approve THQ’s Debtor in Possession motion or the motion for bidding procedures, instead stating that all parties involved will need to “discuss and work out their issues over the weekend.”

She has set a new hearing for Monday, January 7.

Should the DIP motion have been granted, THQ would have been able to remain in possession of its property despite liens issued by creditors or other parties with a security interest.

Creditors of THQ consist of Wilmington Trust, WWE, Silverback Asset Management, Mattel and Viacom.

THQ filed for Chapter 11 bankruptcy in December, and normally when filing Chapter 11, the corporation or business which continues to operate under these proceedings is considered a Debtor in Possession.

Sometimes the DIP can keep its assets should it pay its creditors a fair market value for said assets, even if a different price was noted on a contract.

Hopefully, something can be worked out for all parties involved by Monday.

Via Beefjack.

Thanks, Edo.

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13 Comments

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  1. Telepathic.Geometry

    Man, I hope all of the devs land on their feet…

    #1 1 year ago
  2. Hirmetrium

    Christ, the carving of the turkey is obviously not that far off. It’s pretty disappointing – I expected more from creditors (I mean, they won’t make money back on Company of Heroes unless they get to the point its released).

    Is this a way for them to circumvent the “management” (Brian Farrell)?

    #2 1 year ago
  3. The_Red

    It’s Midway all over again. Except THQ didn’t just depend on a single franchise for decades (MK) and actually TRIED to make some decent and varied games.
    Really hope their many teams and employees don’t lose their jobs because of company’s bad luck and questionable decisions (Looking at you Homefront).

    #3 1 year ago
  4. NeoSquall

    It wouldn’t be that bad if WB purchased THQ as a whole, even as a late buyer after Clearlake has thrown enough money to ensure a release for the already announced games (maybe in exchange for a 20/30% cut of revenue).

    #4 1 year ago
  5. TD_Monstrous69

    Keeping my fingers crossed Warner Bros. buys them up. Time Warner’s games arm is one of the best managed groups in the business, and with some of THQ’s IP’s and development/design talent, they could grow even further to be one of the top five developers in the industry.

    #5 1 year ago
  6. JimFear-666

    i really cant wait to play lego saint-row!!!

    #6 1 year ago
  7. Phoenixblight

    @5

    Time Warner and Warner Bros are not the same company. Warner Brothers got rid of that arm a long time ago.

    #7 1 year ago
  8. DSB

    Looks like there are a lot of players lined up to strip THQ.

    You can’t really blame them though. They’ve been getting fucked over for close to two years, and probably just want to cut their losses.

    Of course everyone wants a Cinderella story, but I think this makes it look pretty grim.

    #8 1 year ago
  9. Phoenixblight

    THQ as a whole really has nothing to offer to any potential buyer. They only have a handful of studios and IPs that are worth anything to anyone. They would be better off stripping it down by piece and taking what they want. Its that or buying it in bulk and then laying off everyone that hasn’t produced anything.

    #9 1 year ago
  10. Clupula

    Who are the other four?

    #10 1 year ago
  11. Astral Frost

    I want to see Square-Enix buy some of their assets. If they could even gain ownership of Relic and Volition, that would be amazing. Sleeping Dogs is a good open world franchise, but it offers something a bit different from Saints Row, so I think Square-Enix would do well to secure Volition and Saints Row. I’m not sure how this works, but I hope it all works out in the end.

    #11 1 year ago
  12. Phoenixblight

    @11

    Give credit where credit is due. Sleeping Dogs was not done by a Square Enix studio. It was done by United Front which is an independent studio.

    #12 1 year ago
  13. TD_Monstrous69

    @Phoenixblight, what are you talking about? Warner Bros. is owned by Time Warner, just as NetherRealm studios and Travelers Tales are. All three are part of Time Warner’s games arm, consolidated under one publishing group, known as WB Games (though worth noting, not all of the games from this group are made in-house, Arkham City came from RockSteady Games, which is an independent game studio not owned by WB, and also, there are more studios to that group, but those are the three noteworthy names I can think of). I believe you might be mixing them up with Viacom, who used to own Harmonix and had them running under MTV Games. Now, the only thing Viacom’s got in games is GameTrailers TV.

    #13 1 year ago