THQ Files for Bankruptcy

[LongBlade]

Thanks, Arctic.

[Greybriar]

Thanks for the update, Arctic Blast.

[Arctic Blast]

No problem. I'm a fan of a lot of THQ's games, so I've been following the downward spiral for the last year and a half or so. Luckily, the old management team has largely been tossed or sidelined.

[Greybriar]

I just learned that the THQI auction is set to begin on January 22nd and it will allow for piecemeal ("title by title") sales of THQ assets.

Source

[Arctic Blast]

Yep, it seems the judge agreed with several of those owed money by THQ that they were pulling some shenanigans in their agreement with Clearlake.

http://www.gamasutra.com/view/news/184395/THQ_denied_quick_bankruptcy_sale_in_wake_of_creditor_complaints.php#.UOu6JHfheWZ

A little more here about the complaints : http://www.gamasutra.com/view/news/184327/THQs_creditors_cry_foul_over_Clearlake_plans.php#.UOu6V3fheWZ

Basically, THQ's execs tried to make a sweetheart deal with Clearlake during a holiday season that would make it difficult for other suitors to put a bid together.

[undercovergeek]

Yep, it seems the judge agreed with several of those owed money by THQ that they were pulling some shenanigans in their agreement with Clearlake.

http://www.gamasutra.com/view/news/184395/THQ_denied_quick_bankruptcy_sale_in_wake_of_creditor_complaints.php#.UOu6JHfheWZ

A little more here about the complaints : http://www.gamasutra.com/view/news/184327/THQs_creditors_cry_foul_over_Clearlake_plans.php#.UOu6V3fheWZ

Basically, THQ's execs tried to make a sweetheart deal with Clearlake during a holiday season that would make it difficult for other suitors to put a bid together.

can we all chip in and buy the WH40K rights?

[Gusington]

Good idea. I have 40.00. Anyone else in?

[LongBlade]

^ Ubi might have slightly deeper pockets than us: http://www.mcvuk.com/news/read/ubisoft-plots-thq-bid/0108645

[Gusington]

Ok 41 dollars. You drive a hard bargain. The idea of Ubi Soft getting its DRM happy mitts on former THQ titles makes me queasy.

[Shelldrake]

Will this affect the release of COH2?

[LongBlade]

Will this affect the release of COH2?

No idea. Probably depends on the state of the game and how much they paid for it.

[Arctic Blast]

Will this affect the release of COH2?

I wouldn't think so. It's pretty far along and the first game did quite well. COH2 is probably going to be one of the big 'gets'. Someone will grab up the South Park RPG. Metro Last Light is far enough along that it SHOULD be grabbed up, but who knows?

What nobody seems to know is if just individual properties are up, or if studios are on the block as well. I kind of hope the latter is the case, because I'm pretty certain Relic and Volition would be snapped up quite quickly. And THQ is done when this is over, anyway. I'd rather see them end up at an actually viable company rather than attached to a rotting corpse.

[Arctic Blast]

So, the THQ bidding war is well under way. Lots of rumors, but I guess it IS now confirmed that SEGA has purchased Relic. A few Relic employees have also tweeted that they now work for SEGA.

Probably the best place for them to end up. SEGA's a good publisher, and this should mean that Company of Heroes 2 isn't going to suffer any set backs. Also, this puts Warhammer Fantasy AND 40K with separate devs under the SEGA umbrella.

Rumors have Volition (Saints Row) going to Koch Media Germany, who publish the Sacred series and X series among others. Or they're at least 'in the lead' in terms of biggest auction bids.

UPDATE : Huh, apparently the whole thing is done now, as is THQ.

To All THQ Employees:

We now have the answers we've been seeking through our financial restructuring and Chapter 11 case. While much will be written, here are the facts of the bids and auction that occurred:

Yesterday morning, we received a competing bid for the operating business, along with Clearlake's offer, and numerous offers for separate assets. During an auction process that lasted over 22 hours, the final conclusion was that the separate-asset bids would net more than a single buyer for the majority of the company.

Shortly, we will present the results to the U.S. Bankruptcy Court, which must concur with our assessment.

The proposed sales of multiple assets is as follows :

    Sega agreed to purchase Relic
    Koch Media agreed to purchase Volition and Metro
    Crytek agreed to purchase Homefront
    Take 2 agreed purchase Evolve and
    Ubisoft agreed to purchase Montreal and South Park

We expect these sales to close this week.

Some assets, including our publishing businesses and Vigil, along with some other intellectual properties are not included in the sale agreements. They will remain part of the Chapter 11 case. We will make every effort to find appropriate buyers, if possible.

What this means for employees

We expect that most employees of the entities included in the sale will be offered employment by the new owners. However, we cannot say what these owners may intend, and there will likely be some positions that will not be needed under the new ownership. You should receive notice this week or early next week if the new owners intend to extend employment to you. Please note that the terms of your new employment, including pay and benefits, may be different from the current terms of your employment with THQ.

If you are an employee of an entity that is not included in the sale, we regret that your position will end. A small number of our headquarters staff will continue to be employed by THQ beyond January 25 to assist with the transition. THQ has sufficient resources to pay these employees for work going forward, and we will be contacting these employees immediately to ensure their continued employment during this transition period. We are requesting the ability to offer certain severance pay to minimize disruption for employees of non-included entities as they determine the next steps in their careers.

We know you will have many questions about this news. We'll be meeting tomorrow when we return to talk through this announcement and to answer any questions you have. You will receive a benefits fact sheet and FAQs with answers to some questions that may be on your mind. Please review these materials closely.

A personal note

The work that you all have done as part of the THQ family is imaginative, creative, artistic and highly valued by our loyal gamers. We are proud of what we have accomplished despite today's outcome.

It has been our privilege to work alongside the entire THQ team. While the company will cease to exist, we are heartened that the majority of our studios and games will continue under new ownership. We were hoping that the entire company would remain intact, but we expect to hear good news from each of the separate entities that will be operating as part of new organizations.

For those THQ employees who are part of entities that are not included in the sale, we are confident that the talent you have displayed as part of THQ will be recognized as you take the next steps in your career.

Thank you all for your dedication and for sharing your talent with the THQ team. We wish you the best of luck and hope you will keep in touch.

Sincerely,

Brian Farrell

Chief Executive Officer

Jason Rubin

President

There was a lot of back and forth between South Park Studios and THQ over whether that license was even sale-able for THQ...not sure if that was settled, or Ubi decided to just roll the dice a bit and make a bid. I have no idea what Evolve is, so I'd have to imagine it was something in development. Crytek buying up the rights to Homefront makes sense : they do shooters well, and the first Homefront actually sold very well despite pretty middling reviews.

[LongBlade]

Great news, Arctic. Relic is a great company. I had no idea they had the kind of cash to buy SEGA.

[Arctic Blast]

Great news, Arctic. Relic is a great company. I had no idea they had the kind of cash to buy SEGA.

Wrong way around. SEGA bought Relic.  ;D The rumor is $15 million was the price at auction.