Video Game Publisher THQ Files for Bankruptcy20 Dec, 2012 By: Erik Gruenwedel
In a move mirroring industry declines, video game publisher THQ Dec. 19 filed for Chapter 11 bankruptcy protection.
Agoura Hills, Calif.-based THQ, which is known for its “Saint’s Row” franchise and World Wrestling Entertainment licensed games, said it received $60 million in a “stalking horse bid” from Clearlake Capital Group, a private equity group.
A stalking horse bid is the minimum amount a third-party bidder would have to commit to acquire the assets of THQ.
THQ, which was valued at about $2 billion in 2007, plummeted to $2.5 million in market capital at the close of business Dec. 19. Notable issues this year revolved around evaporating children’s video game sales — a business THQ had staked license deals with Pixar Animation and DreamWorks Animation titles on.
“THQ made headlines today — and I am sure there will be tons of click-grabbing headlines over the next month or so,” Jason Rubin, who was named president of THQ in May, said in a statement. “But what matters to us is not what is happening to THQ right now, but what the company and its teams will make of ourselves after we complete the sale.”