THQ's bankruptcy hearings concluded, company breaking up
updated 03:43 pm EST, Thu January 24, 2013
Sale of assets exceeds $72 million, some IP still unsold
Game published THQ has announced that it has received court approval for asset selloff, and will split following the sale. The transaction, worth about $72 million will see Relic Studios sold to Sega for $22.3 million, with Volition, Inc headed to Sega Corporation for $5.9 million. Other properties are headed to Crytek, Take Two, and Ubisoft. The fates of other intellectual properties owned by THQ, and the company's publishing business are not part of the sale process.
THQ obtained court approval earlier this month for a standard bankruptcy auction process that allowed other companies to bid for its assets. The company appointed private investment firm Clearlake Capital Group as the lead bidder for the whole company, and petitioned the court for a quicker auction process. Investors claimed that it gave an unfair advantage to Clearlake Capital, and was designed to stop other bidders from raising the sale price.
"While we had hoped that the restructuring process would allow the company to remain intact, I am heartened that the majority of our studios and games will continue under new ownership," said THQ Chief Executive Brian Farrell in a letter to the company's employees, made public yesterday. The letter also announced the layoffs of nearly everyone in the company, with a select few retained to manage the orderly closure and separation of intellectual properties.
The toy manufacture turned video game publisher was founded in 1989. The company's best year was 2007, where it earned $1 billion with an $18 million profit for the year. THQ was responsible for recent AAA-titles such as the Saint's Row series, video game adaptations of the Warhammer 40,000 universe, and other licensed titles from Nickelodeon, Disney, and Pixar.
