According to a letter sent to employees last Wednesday from Brian Farrell, THQ CEO, and Jason Rubin, the company’s president, the THQ toy company expected to sell off its assets in pieces to multiple gaming competitors for $72 million in a bankruptcy auction. The following day, a U.S. Bankruptcy Court judge approved the sale.
New owners of THQ assets include a variety of gaming companies:
- Japanese gaming company Sega Corp. bought the military franchise “Company of Heroes” and its developer Relic Entertainment for $26.6 million;
- European publisher Koch Media picked up the “Grand Theft Auto” parody “Saints Row” and its developer Volition Inc. for $22.2 million along with science-fiction game series “Metro” for $5.9 million;
- Take-Two Interactive bought action game “Evolve” for $10.9 million;
- Ubisoft spent $3.3 million to release game-based Comedy Central series South Park and also purchased a Montreal studio for $2.5 million;
- And Crytek developer bought the action franchise “Homefront” for $544,218.
As there were no buyers for THQ’s Texas-based Vigil Games, its publishing company and other intellectual properties, those assets will continue in the Chapter 11 bankruptcy process.
Farrell and Rubin do expect new owners to extend employment to most employees who would continue to develop the games companies purchased, though the companies have not articulated plans for employment yet.
The two regret the outcome, especially for those whose jobs will not continue, and thanked their team for all of the work they’ve done over the years for the THQ family.
THQ was founded in 1989 and grew to become a major producer of kids’ games, operating under Hollywood licenses such as Pixar Animation and Nickelodeon. While the company saw strong numbers in the past, it began struggling in recent years as the market for licensed children’s games shrank. The company tried to compete with top players but ended up producing unsuccessful games which drained it of money and resulted in a December 2012 bankruptcy protection claim.
Boasting over 1,000 employees two years ago, THQ shares dropped from $341.70 in 2007 to 36 cents on the day it claimed bankruptcy.
- Movile Adds 13 New Series to PlayKids TV and Sets Sights on Global Expansion
- Club Penguin Co-Creator Lance Priebe Shares Journey to Mech Mice Launch
- New Disney Technology Allows You to ‘Feel’ Touchscreen Images
- Amazon Launches New Program for Developers
- App Annie Expands Analytics & Market Data Platform to eBook Realm
- Magic Light Pictures Launches First Mobile App
- 2013 Digital Kids Edu and Summit Audio MP3 Files Released
- Digital Kids Summit and Digital Kids Edu Speaker Presentations Now Available
- Skylanders Opens the Magical Skylands World to YouTube in New Boomcast Webisodes
- Baby Bytes and Precision Development Partner to Create App Suite for Families with Young Children
- Digital Kids Fall Events Wrap Up
- Lil’Stylers Launches Kids Fashion App
- TribePlay’s Dr. Panda App Series Surpasses 10M Downloads
- Candy Crush Publisher King Files U.S. IPO Valued at $5b & Hires New Chief Financial Officer
- Cupcake Digital and Zodiak Kids Launch First Tickety Toc Story App Experience
- ClickN Kids Introduces Tablet Featuring Looney Tunes Phonics Program
- Foothill Entertainment and Kidobi Enter Digital Distribution Partnership
- Hasbro and PlayDate Digital Introduce My Little Pony Digital Book App
- Toca Boca Launches Toca Cars
- Fingerprint Expands Mobile Edutainment Platform to Malaysia