Sections

THQ assets to be sold off at auction January 22

Monday, 7th January 2013 21:39 GMT By Brenna Hillier

THQ’s attempt to keep its operations in one piece through a sale to Clearlake Capital has failed, with a number of interested parties expected to bid on its individual assets this month.

Reporting live from a hearing into THQ’s proposed sale, reconvening from a weekend session, Distressed Debt Investing said that Clearlake attempted to address the judge and objector’s issues with the proposed sale.

The capital group, which is providing credit to THQ during its bankruptcy, agreed to lower an unusually high disappointment payment, allow potential buyers to bid on individual titles and to extend the time permitted for bids until January 15.

Clearlake and THQ’s creditors hadn’t been able to reach an agreement, and as such, the presiding judge ruled that the January 15 extension was not long enough.

After some arguing, all parties agreed to a January 22 auction of THQ’s major assets on a title by title basis.

At least five potential buyers were known to sniffing around THQ’s assets over the weekend, including Warner Bros.; the hearing revealed that EA has also made an appearance. Ubisoft is also said to be interested, with CEO Yves Guillemot openly coveting THQ’s goodies.

The hearing was scheduled last week following complaints from THQ’s creditors and the US Trustee overseeing its bankruptcy that a proposed sale to Clearlake was designed to keep the publisher’s operations in one piece rather than address debts.

THQ filed for bankruptcy in December, revealing at the time that it was in negotiations with a stalking horse purchaser. The publisher’s assets include the near-complete South Park: The Order of the Stick, Company of Heroes 2, and Metro: Last Light, all of which were expected to launch within the first half of the year.

It also has a number of unrevealed titles in the works, including a Vigil Games title codenamed Crawler; Turtle Rock’s Evolve; a project called Atlas at Relic Entertainment, and something known as 1666 at the Patrice Désilets-led THQ Montreal studio.

Twitter links: 1, 2, 3, 4, 5, 6

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20 Comments

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  1. OnionPowder

    The studio is Turtle Rock not Turtle Beach :)

    #1 2 years ago
  2. SlayerGT

    I’d like to purchase the rights to Red Faction and the GeoMod 2.0 engine. I’ll start the bidding at $5…what, that’s more than the last Red Faction was worth..

    #2 2 years ago
  3. Phoenixblight

    Piece by piece THQ will be sold…

    #3 2 years ago
  4. DSB

    Game over.

    #4 2 years ago
  5. NeoSquall

    This is BAD.

    #5 2 years ago
  6. stevenhiggster

    Score 1 for the shareholders. Who care not one jot for the jobs that have just been lost, the work that has gone to waste and the lost hours of entertainment for us. Good one.
    This is the ugly business side of the gaming industry, shame.

    I at least hope whoever buys the parts doesn’t screw them up.

    #6 2 years ago
  7. Edo

    Good grief,I just hope Metro Last:Light comes out eventually,that is all.

    #7 2 years ago
  8. Phoenixblight

    @7

    All the games that planned to come out this year will still be released.

    #8 2 years ago
  9. Brenna Hillier

    @1 ha ha yes. As you can no doubt imagine I smashed this out of the keyboard in rapid-fire fury. Thanks for the spot. Fixed.

    #9 2 years ago
  10. Edo

    @8 Thanks Jason Rubin.

    #10 2 years ago
  11. Erthazus

    :(

    #11 2 years ago
  12. Phoenixblight

    @10

    ??
    Thats what 60 million was for to get those games out the door and to appease the creditors.
    All the studios still are working on their games and that will help sell the studios because buyers will be able to buy a game IP for cheap and will release this year.

    #12 2 years ago
  13. YoungZer0

    I really think Homefront and Red Faction Armageddon broke the companys neck.

    #13 2 years ago
  14. Edo

    @12 It isn’t a direct quote from a man that tried to save THQ?

    #14 2 years ago
  15. Phoenixblight

    @14

    No? Not that I know of.

    #15 2 years ago
  16. Hunam

    @13

    RFG was a minor wound, it was Homefront and uDraw that killed the company.

    #16 2 years ago
  17. DSB

    @6 Talk about misplaced anger.

    People aren’t going to lose their jobs because of the shareholders, they’re going to lose them because the company was lead by careless idiots.

    I don’t see how they stand to “score” even a little bit on this. THQ robbed shareholders with a reverse stock split that did little more than prolong the suffering, and whatever shareholders are left stand to get a minute fraction of what they put into the company in the first place.

    I’m sure everybody wanted this to be a Cinderella story, but I don’t blame the shareholders for wanting to get what little compensation they can at this point.

    #17 2 years ago
  18. Christopher Jack

    I wonder who’ll end up with relic &/or the W40k license. All I really wanted was another sequel to dawn of war but as a more traditional RTS like the original.

    #18 2 years ago
  19. Dragon246

    Sad news, but I cant blame the shareholders. They needed at least some of their money back.

    #19 2 years ago
  20. TD_Monstrous69

    Wow, talk about getting picked clean. It’s sad to see, feel bad for Jason Rubin, hope all the projects that THQ were working on all land with good development houses, as well as I wish the best to Jason Rubin. Talk about inheriting a shit storm.

    #20 2 years ago