THQ Closes Public Offering21 Nov, 2001 By: John Gaudiosi
Calabasas, Calif.-based video game publisher THQ Inc. closed its public offering of 2,750,000 shares of common stock at $53.50 per share. Net proceeds of the offering were approximately $140 million, which does not include potential proceeds from the exercise of the underwriters' over-allotment option of 412,500 shares. The net proceeds from the offering will be used for general corporate purposes, including, working capital, capital expenditures, product development, joint ventures and strategic acquisitions.
"We expect this successful public offering to help us enhance THQ's leadership in the video game industry," said president and c.e.o. Brian Farrell.
After dominating the Game Boy market for years, THQ has had enormous success with console games thanks to its exclusive video game licensing deal with Nickelodeon and the World Wrestling Federation. In addition to WWF games and titles based on December’s theatrical Jimmy Neutron: Boy Genius, Nick’s "Rugrats," "The Wild Thornberrys" and "Rocket Power," THQ has a diverse portfolio that includes the mission-based action-adventure snowboarding game Dark Summit, the first-person shooter set on Mars, Red Faction, a slate of new Tetris games, beginning with Tetris Worlds, and new games starring “Scooby Doo.”
THQ’s Wireless Division recently acquired the rights to 50 classic Intellivision games to port to wireless phones and personal digital assistants (PDAs).
The company is also expected to close its acquisition of video game and animation house Rainbow Studios in the next few weeks, which will give it a premiere video game developer, which is also working on big screen CGI projects like Teenage Mutant Ninja Turtles and Mighty Mouse.