THQ UPDATE Assets to be Sold 'Title by Title' on January 22

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THQ UPDATE Assets to be Sold 'Title by Title' on January 22

Postby Who Really Cares? » Wed Dec 19, 2012 4:05 pm

THQ Assets to be Sold 'Title by Title' on January 22


http://uk.ign.com/articles/2013/01/07/t ... -more-time


THQ has filed for bankruptcy, and its assets have been obtained by Clearlake Capital Group?in a 'stalking horse bid.'

Reading into the press release below it sounds like Clearlake has snapped up all of the studios assets including its four development houses. This means that the publisher will be able to continue as normal for now with minimal disruption and although the old company has filed for Bankruptcy in order to clear debts, the new company will move forward with development of its currently planned titles pending agreement of the sale.

Just to add a little clarity, stalking horse bids are used to test market interest in an acquisition target and improve sales conditions. Obviously bankruptcy would wipe out THQs debts, leaving the way for any buyer to sell the company and its most valuable assets on, leaving room for a rather large profit for the buyer.

To add a little twist it is also possible that other companies may bid for THQ's assets before the sale is complete, although whether this will happen or not remains to be seen.

[Update 1]

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.


http://www.shopto.net/news/41575/THQ-fi ... ke-Capital
Last edited by Who Really Cares? on Mon Jan 07, 2013 4:58 pm, edited 1 time in total.
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Re: THQ files for Bankruptcy

Postby Spokane » Wed Dec 19, 2012 4:15 pm

Its sad news but we did see this coming I guess.
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Re: THQ files for Bankruptcy

Postby Yokosuka Martian » Wed Dec 19, 2012 4:18 pm

Wonder what this means for the WWE games
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Re: THQ files for Bankruptcy

Postby Who Really Cares? » Wed Dec 19, 2012 4:25 pm

Better games? The WWE series has been shit for a while.


Just don't give it to EA.

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Re: THQ files for Bankruptcy

Postby Bluecast » Wed Dec 19, 2012 4:26 pm

NO!
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Re: THQ files for Bankruptcy

Postby Deta » Wed Dec 19, 2012 4:47 pm

Yokosuka Martian wrote: Wonder what this means for the WWE games

Who was even buying them? I remember WWF Attitude being playable but from that point on they didnt provide anything new. And that was like 99' or something.
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Re: THQ files for Bankruptcy

Postby Segata Sanshiro Jr. » Wed Dec 19, 2012 4:52 pm

Kids mostly, they don't call this the PG era for nuthin.
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Re: THQ files for Bankruptcy

Postby Henry Spencer » Wed Dec 19, 2012 4:56 pm

CEO's Twitter posts positive:

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Sounds like they're being bought by some company?
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Re: THQ files for Bankruptcy

Postby Yokosuka Martian » Wed Dec 19, 2012 4:56 pm

I enjoyed SvR 06 and WWE 12 actually :-p
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Re: THQ files for Bankruptcy

Postby Samanosuke Akechi » Wed Dec 19, 2012 5:01 pm

Another one bites the dust.

Speaking of wrestling games,the only one I truly enjoyed was was No Mercy.
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Re: THQ files for Bankruptcy

Postby Segata Sanshiro Jr. » Wed Dec 19, 2012 5:09 pm

I miss the old wrestling games, AKI used to make em, they did the first few Def Jam games, the amazing Kinikkuman games and Virtual pro wrestling

WAHAT?!

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Re: THQ files for Bankruptcy

Postby MiTT3NZ » Wed Dec 19, 2012 5:17 pm

Meh, as long as I get South Park, I ain't arsed. Never been a fan of their games. That said, sucks for job losses.
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Re: THQ files for Bankruptcy

Postby Bluecast » Wed Dec 19, 2012 7:53 pm

Darksiders...... :sad:
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Re: THQ files for Bankruptcy

Postby Spokane » Wed Dec 19, 2012 8:57 pm

^ Yep.

Oh well. At least we have the two we got. Like with Shenmue except there isn't as much as a cliffhanger with DS.
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Re: THQ files for Bankruptcy

Postby Segata Sanshiro Jr. » Wed Dec 19, 2012 8:58 pm

There is, we just haven't had 10 years to stew on it
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