THQ Filing Bankruptcy

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This is a situation where the company is going to be purchased for bottom dollar, allowing the purchasing investors to rebuild the company with minimal impact from past financial issues of the company to be bought.

THQ is not dead.

article said:
HQ has filed for Chapter 11 bankruptcy and has entered into an asset purchase agreement with Clearlake Capital Group, a private equity firm. Clearlake is "to acquire substantially all of the assets of THQ's operating business, including THQ's four owned studios and games in development." THQ's stock on the Nasdaq exchange has been halted, with the company expecting to be delisted within nine calendar days.

"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 THQ CEO Brian Farrell.

THQ hopes to have the sales process completed in 30 days. No layoffs are planned or announced at this time, with employees to be paid normally and work normal schedules.

THQ announced in early November that is was seeking "strategic alternatives" to its dire financial situation. Clearlake has agreed to serve as the "stalking horse bidder," a fancy term for an interested buyer chosen by the company, but there could be other interested buyers.
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Wonder if now will be a good time to buy stock in THQ and gamble on the company's turn around.
 
Skillz said:
Wonder if now will be a good time to buy stock in THQ and gamble on the company's turn around.
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I think the best time will be in a few weeks, after the take over has finished the re-structuring period and all of the investors lacking information have already jumped ship. The stock (if it comes back for trading by then) will take a bigger tumble yet.

In my opinion it's best to take advantage of low stock prices at the very start of an upturn, rather than trying to predict the bottom.
 
Would you trust the same people to restructure and get it right after going through chapter 11? The same people that got them in that state? They need to clean house at the top.
 
pcjunkie said:
Would you trust the same people to restructure and get it right after going through chapter 11? The same people that got them in that state? They need to clean house at the top.
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I could say this about a lot of companies.
 
Homeworld 3 would have prevented this! Well probably not but at least we could be playing it.
 
pcjunkie said:
Would you trust the same people to restructure and get it right after going through chapter 11? The same people that got them in that state? They need to clean house at the top.
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I think it depends on what decisions were made that got them in the predicament they are in now.

With that being said; if you've never failed at anything then you've never done anything either. Therefore the ones who have failed would probably be best suited to NOT repeat their mistakes.
 
It's my understanding that the biggest reason why THQ is in the situation they are, is due to their pricey licensing arrangements for titles like Warhammer, WWE and the various Disney and other IPs.
 
Maplehamwich said:
THQ is not dead.
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Not yet.
They will not survive the transition to the next generation, at least, not the same THQ we know today. It would be sad to see them turn into a phone app developer. I hope it doesn't go that way, but who knows. We do know they can't afford any new next gen projects. I predict this gets ugly before it gets any better.
 
Maplehamwich said:
It's my understanding that the biggest reason why THQ is in the situation they are, is due to their pricey licensing arrangements for titles like Warhammer, WWE and the various Disney and other IPs.
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The reason THQ failed was due to the failure of the uDraw.
 
Skillz said:
I think it depends on what decisions were made that got them in the predicament they are in now.

With that being said; if you've never failed at anything then you've never done anything either. Therefore the ones who have failed would probably be best suited to NOT repeat their mistakes.
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Sorry but the Wall Street collapse has proved that tigers can't (won't) change their stripes. Some of them even had the gall to ask for millions in bonuses after the disaster with millions of people losing everything. But go ahead and invest in them again without a change in leadership.
 
jbonez21 said:
The reason THQ failed was due to the failure of the uDraw.
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That's what I heard as well. After taking a look at the Wiki for the uDraw, seems it was only a real failure after it was ported/released on the PS3 and 360.

"While the initial release of the device for the Wii met with some success, THQ's expanded release of the uDraw for the PlayStation 3 and Xbox 360 has been described as a "disaster". THQ's Chief Financial Officer described 1.4 million unsold units as the primary reason for a revenue shortfall of around $100 million.[1]"

Losing $100m on the uDraw probably is a major factor in the state that THQ is in now. If that was the sole only reason why THQ is in the crapper, then I'd be inclined to say that the decision making staff might have made a wrong decision then, but that doesn't mean the final decision maker will approve such a risk. Though I think THQ's problems started before the uDraw.
 
Skillz said:
"While the initial release of the device for the Wii met with some success, THQ's expanded release of the uDraw for the PlayStation 3 and Xbox 360 has been described as a "disaster". THQ's Chief Financial Officer described 1.4 million unsold units as the primary reason for a revenue shortfall of around $100 million.[1]"
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Holy fuck!

E.T. Phone home? Thats going in a landfill somewhere. Wow.
Thats just bad management there. It's almost unbelievable that noone made the decision to stop production within those 4 months. I understand that it was during the holiday shopping months, but even then, if your projection numbers are miscalculated, it's still your fault. That would explain the surplus...
 
Where are you getting the 4 months time frame from?
 
Apart from the poor sods who are going to be caught in the middle of all this, I can't help wondering how this will affect Company of Heroes 2...
 
pcjunkie said:
Comes back to bad leadership decisions...
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And this is why THQ is filing for Bankruptcy. Tons of not so great or even shitty games being forced down the pipe can't be off set by a few good games and 1-2 great games now and again.

Although despite the failure of THQ leadership I do not want to see them go the way of the dinosaur. So here is hoping they take the right steps towards making themselves a good publisher again.
 
Regretting those shares I bought a week ago or so as a show of support. Oh, well.
 
It was a combination of uDraw and their licensed properties. UFC Undisputed was a money loser which was why the license was sold/transferred to EA. The W40k mmo was cancelled and then pushed back a a new single player game. Space Marine I believe did not really meet expectations.

This is why they announced they would refocus to their "core" titles for future, such as Saints Row (which the 3rd game and DLC did very well financially for them).
 
Lots of companies want to purchase IP from THQ. Saint's Row the 4th might end up coming from Activision in the end. :)
 
Ugh... I hope not, I don't think Activision will do better than THQ. And considering Saint's Row 3 being as refined as it was, I'd really like it to continue going upward.... not in seven different ways trying to appeal to the masses...

But then... I also wish DLCs go away and get a full game but that's not likely to happen either.
 
pcjunkie said:
Sorry but the Wall Street collapse has proved that tigers can't (won't) change their stripes. Some of them even had the gall to ask for millions in bonuses after the disaster with millions of people losing everything. But go ahead and invest in them again without a change in leadership.
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Where have you been? They DID change leadership. The old CEO left and Jason Rubin is in charge now. He has been trying pretty god damn hard to turn the company around. However, THQ was sinking long before he came in and everything he has done to turn the company into something potentially great still hasn't been enough. They were BOUGHT by private investment firm so that means they have new owners to answer to which means more changes at the top.
 
Nice... I hope it's a good change.

Does that investment mean they won't be a publicly traded company anymore?
 
Thq shares currently on the market will not be worth anything.don't be stupid and buy shares now. Most likely the company will go private. Trading shares of bankrupt companies gas no value because those shares will never have any value again.
 
Lets see...
Space Marine: Console port with a multiplayer that still has a ton of lag issues, then released expansions that split the community thus destroying it.
Red Faction Armageddon: Console port, FOV that makes you want to puke forcing you to use a mod.
Saints Row 3: Console port with enough DLC to choke a horse.
Dawn of War 2: Enough DLC to choke a horse, some of which split the community.

So basically, THQ has a lot of awesome IP, but they manage to screw them up in some major way, then try to make up for it by releasing shitloads of DLC.
 
darkstarcow said:
Lets see...
Space Marine: Console port with a multiplayer that still has a ton of lag issues, then released expansions that split the community thus destroying it.
Red Faction Armageddon: Console port, FOV that makes you want to puke forcing you to use a mod.
Saints Row 3: Console port with enough DLC to choke a horse.
Dawn of War 2: Enough DLC to choke a horse, some of which split the community.

So basically, THQ has a lot of awesome IP, but they manage to screw them up in some major way, then try to make up for it by releasing shitloads of DLC.
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Whether you were being serious or not, I had quite a laugh reading this :)
 
pcjunkie said:
Sorry but the Wall Street collapse has proved that tigers can't (won't) change their stripes. Some of them even had the gall to ask for millions in bonuses after the disaster with millions of people losing everything. But go ahead and invest in them again without a change in leadership.
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Good to see you have a firm grasp on the financial world. /sarcasm
 
Redshirt #24 said:
Apart from the poor sods who are going to be caught in the middle of all this, I can't help wondering how this will affect Company of Heroes 2...
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Supposedly, according to those who know, it's not going to effect the release of the game at all or the timetable.
 
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