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41.

Re: CoH2, Metro Last Light, and South Park Game Delayed

Nov 6, 2012, 15:12

Parallax Abstraction

Jerykk wrote on Nov 6, 2012, 12:29:
In this case, a 47% crash is only $1.40, so it's not quite as dramatic as the percentage would suggest. Still, I'd be surprised if THQ survives into 2014.

They've also dropped to under the market cap required to continue being listed on the NASDAQ. They already did a 10:1 reverse stock split in order to maintain compliance once and they can't do it again. Unless they either sell the company or something happens to cause a rally, they'll end up facing delisting again. I really don't know how they can recover from this. They're basically now trying to shepherd their current titles to completion with what they have left on their line of credit (which is something like $60M I think) and $36M in cash. This is to finish development, market them (which usually costs at least as much as development), plus they have to figure out how to make titles for next-gen where budgets will go up even more.

Apparently WWE 13 is selling well though (and it came out too late in the quarter to reflect in these earnings) and their versions of Wheel of Fortune and Jeopardy usually do well with casuals, plus many seem to think SR3 Full Package will sell well and that's going to be a much higher margin item for them. I dunno though, I don't see how that carries them well into next year though.

This comment was edited on Nov 6, 2012, 15:22.




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