THQ files for Chapter 11 Bankruptcy

[jlfarris]

The old days, they're no more.

THQ, the maker of the WWE video game series, has filed for chapter 11 bankruptcy as of today. Statements from THQ indicate the company effectively is no more as an independent entity and is being taken over by another organization of some sort. As part of that move towards being bought out, THQ has entered bankruptcy in order to shed liabilities so it can emerge on the other side as a more profitable entity.

In a statement, the company said, ""The sale will allow THQ to shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology."

This should come as no shock, as the company with assets valued at nearly $60 million defaulted on a $50 million credit facility recently. The writing has been on the wall awhile for the company, and now it appears someone has stepped in to buy assets of the company and sell others off.

What this means for THQ's projects remains to be seen, but it is a good bet they will almost certainly try to keep the WWE license as it's one of the companies best money makers. However, don't count out any possibilities. The one probability you can take to the bank is that there will continue to be WWE games released, as the series has sold quite well in recent years. [Gamespot]

[Gramps91]

Kinda stinks, I've always liked the THQ games I've played over the years. Their WWE games to have problems but I tend to enjoy them pretty well and get it every year.

[SmashMan]

Re: THQ files for Chapter 11 Bankruptcy

I'm interested in seeing what would come of the WWE license in someone else's hands. Could be good, could be bad - I'm just ready for a new take on WWE games.

It would obviously take a couple years to get it on par with the customization options THQ provides, but I'm fine with that; assuming a new company puts together a good base and then adds these new features with more stability than THQ has of late.

[Redacted01]

Re: THQ files for Chapter 11 Bankruptcy

I'm interested in seeing what would come of the WWE license in someone else's hands. Could be good, could be bad - I'm just ready for a new take on WWE games.

It would obviously take a couple years to get it on par with the customization options THQ provides, but I'm fine with that; assuming a new company puts together a good base and then adds these new features with more stability than THQ has of late.

Pretty sure whoever takes over THQ gets the contract. What happens after that, though, is unknown. Either the current agreement remains intact and whoever buys it keeps the current group in charge. Whoever buys it could take over and put new people on it. Or someone new could take over. I'd much rather see what we have now improved instead of something new, especially with new systems out soon, though the transition should be smoother this time around. All I remember is how long it took for NCAA and Madden to be decent, and even then they still aren't as good as their last gen versions in some ways.

[SmashMan]

Re: THQ files for Chapter 11 Bankruptcy

Pretty sure whoever takes over THQ gets the contract. What happens after that, though, is unknown.

I'm just assuming that they're going to cut ties with the WWE license because it costs them money. The game sells, but I thought I read that the UFC and WWE licenses were their most expensive, so I'm not sure how much money they actually make off the game.

[UMhester04]

Re: THQ files for Chapter 11 Bankruptcy

Pretty sure whoever takes over THQ gets the contract. What happens after that, though, is unknown. Either the current agreement remains intact and whoever buys it keeps the current group in charge. Whoever buys it could take over and put new people on it. Or someone new could take over. I'd much rather see what we have now improved instead of something new, especially with new systems out soon, though the transition should be smoother this time around. All I remember is how long it took for NCAA and Madden to be decent, and even then they still aren't as good as their last gen versions in some ways.

Exactly, I really do not want anyone else to take over simply because we wont get a game with real substance for about 4-5 years at least.


Besides, who else would take the WWE license? I was looking at the WWE 13 sales data and it didn't even come CLOSE to what Saints Row made for THQ. It was a little shocking to me seeing the WWE numbers so low compared to Saints Row.

[DJ]

Re: THQ files for Chapter 11 Bankruptcy

According to the Wreslting Observer, THQ owes the WWE $45 million. Yikes.

I would have to think Vince will be shopping the WWE license around to other gaming companies.

[SmashMan]

Re: THQ files for Chapter 11 Bankruptcy

I would have to think Vince will be shopping the WWE license around to other gaming companies.

Why not self-publish? They already have music and film divisions, and I could see an expansion to games being natural.

[goh]

Re: THQ files for Chapter 11 Bankruptcy

I don't care who publishes it,just take it away from Yuke's.

[UMhester04]

Re: THQ files for Chapter 11 Bankruptcy

According to the Wreslting Observer, THQ owes the WWE $45 million. Yikes.

I would have to think Vince will be shopping the WWE license around to other gaming companies.

WOW thats not good...do we think Vince would even want there to be another WWE game after seeing a statistic like that? Would he think they are doing more harm than good?

[King_B_Mack]

Re: THQ files for Chapter 11 Bankruptcy

WOW thats not good...do we think Vince would even want there to be another WWE game after seeing a statistic like that? Would he think they are doing more harm than good?

Vince will make money either way so of course he wants there to be another game. They're going to get paid regardless by a company paying the licensing fee.

[Nature_Boy]

Re: THQ files for Chapter 11 Bankruptcy

WWE RESPONDS TO THQ FILING.

STAMFORD, Conn., December 20, 2012 – WWE (NYSE:WWE) is listed in THQ, Inc.’s recent bankruptcy filing as an unsecured creditor holding a claim of approximately $45 million reflecting the entirety of the existing multi-year agreement. Any impairment of a current THQ account receivable would be immaterial to WWE's financial statements. Even if the impact of THQ’s bankruptcy were detrimental to WWE, the Company does not believe that the ultimate economic impact for financial statement purposes would materially and adversely affect the results of operations or financial position of WWE in light of the strength of the WWE brand and the historical performance of WWE's video game business.

http://corporate.wwe.com/news/2012/2012_12_20-****p