Beamer wrote on Dec 19, 2012, 15:47:

Creston wrote on Dec 19, 2012, 15:33:
Can someone explain what's entailed in a Section 363 sale process?

Is there any chance of them continuing the way they have been, at all? I'd hate to see Saints Row go under...

Creston

A separate entity buys the rights to auction the company, in essence. THQ is somewhere along the lines of an $8 million dollar company. The rights to auction it were purchased for $60 million, so clearly people think it has value. If no one bids $60 million Clearwater gets THQ. If anyone bids more Clearwater gets a commission on that. That $60 million includes $10 million to debtors, but otherwise it's a sale of assets and not debts.

THQs goal is to still exist. Their stock is going to be delisted, but they fully expect to still exist. They're looking for someone larger to purchase them and keep them going. THQ has zero value to anyone not looking to do a video game company, so they'd stick around in some form. If you're in the home office, you should fear for your job. If you're in Volition you should fear what happens if a sale takes too long and cash runs out, but otherwise you have a future.

But what will ultimately happen if this is successful is that someone will own THQs value but not most of their debt (some of their purchase goes to that debt.) This leaves THQs only overhead being things like salaries and occupancy. They're mostly a healthy company like that, which is why they're doing this, but they saw no way to get out on their own.

Cutter wrote on Dec 19, 2012, 15:31:
Yes, but the only important issue is what's going to become of the Saints Row IP?

Dev wrote on Dec 19, 2012, 19:13:

Beamer wrote on Dec 19, 2012, 16:31:
Do the execs want to get paid for doing a good job here? Yes. Yes they do. But they're not dumb enough to take money out of the coffers when they're struggling to stay alive at a time that they know that being bought out will mean even more money for them.

And yet, thats pretty much exactly what the Caen bros did with Interplay's corpse. Essentially, they got more in bonuses than fallout online got in dev funds during the years they pretended to do something with it, so they wouldn't forfeit the IP to beth per the contract. I checked Interplay's financial statements for those years, and that was pretty obvious.

If they had instead used all that money to do actual substantial development, they might have had a leg to stand on and keep the MMO IP, and perhaps even get it released and made money off of it.

Now I doubt anything like that will happen with THQ, but my point is, greed can be very stupid and outweigh any logical thought.

Beamer wrote on Dec 19, 2012, 16:31:
Do the execs want to get paid for doing a good job here? Yes. Yes they do. But they're not dumb enough to take money out of the coffers when they're struggling to stay alive at a time that they know that being bought out will mean even more money for them.

Jivaro wrote on Dec 19, 2012, 18:06:

Rhino wrote on Dec 19, 2012, 17:23:

Slashman wrote on Dec 19, 2012, 17:19:

zombiefan wrote on Dec 19, 2012, 17:09:
WOOHOO!!! Champagne for everyone! Kiss my ass, THQ.

(passes around cigars)

Huh?

zombiefan pretty much pulls this in every thread about THQ. They apparently touched him in his special area or made him eat his own dog or some other such thing.

*clicks through post history*

Wow...Zombiefan, what did THQ do to you?

Rhino wrote on Dec 19, 2012, 17:23:

Slashman wrote on Dec 19, 2012, 17:19:

zombiefan wrote on Dec 19, 2012, 17:09:
WOOHOO!!! Champagne for everyone! Kiss my ass, THQ.

(passes around cigars)

Huh?

zombiefan pretty much pulls this in every thread about THQ. They apparently touched him in his special area or made him eat his own dog or some other such thing.

Rigs wrote on Dec 19, 2012, 16:10:

RollinThundr wrote on Dec 19, 2012, 16:04:

Rigs wrote on Dec 19, 2012, 15:52:
So...umm, where'd all that bundle money go?

Plus, if they were to give Volition permission to go ahead with Freespace3, they'd be rollin' in it in no time! (Yes, I live in a fantasy world, doesn't everyone?)



=-Rigs-=

The smoldering ashes of Interplay still retain the rights to Descent and Descent Freespace.

BLASTED! Foiled again!


=-Rigs-=

Beamer wrote on Dec 19, 2012, 16:31:
Stop being paranoid.

Slashman wrote on Dec 19, 2012, 17:19:

zombiefan wrote on Dec 19, 2012, 17:09:
WOOHOO!!! Champagne for everyone! Kiss my ass, THQ.

(passes around cigars)

Huh?

zombiefan wrote on Dec 19, 2012, 17:09:
WOOHOO!!! Champagne for everyone! Kiss my ass, THQ.

(passes around cigars)

ViRGE wrote on Dec 19, 2012, 16:36:
Well crap. I really hope this doesn't mean they start screwing with the dev cycles of the few games they have in production. THQ has a good lineup planned, but if they aren't allowed to incubate then it won't really matter.

Kajetan wrote on Dec 19, 2012, 16:07:

Beamer wrote on Dec 19, 2012, 15:54:
To keep them afloat for the next few months.

Do you KNOW that or are you just guessing like everyone else? This money could also be used to pay a management bonus, because they did so well in managing the transition to Chapter 11.

Beamer wrote on Dec 19, 2012, 15:47:

Creston wrote on Dec 19, 2012, 15:33:
Can someone explain what's entailed in a Section 363 sale process?

Is there any chance of them continuing the way they have been, at all? I'd hate to see Saints Row go under...

Creston

A separate entity buys the rights to auction the company, in essence. THQ is somewhere along the lines of an $8 million dollar company. The rights to auction it were purchased for $60 million, so clearly people think it has value. If no one bids $60 million Clearwater gets THQ. If anyone bids more Clearwater gets a commission on that. That $60 million includes $10 million to debtors, but otherwise it's a sale of assets and not debts.

THQs goal is to still exist. Their stock is going to be delisted, but they fully expect to still exist. They're looking for someone larger to purchase them and keep them going. THQ has zero value to anyone not looking to do a video game company, so they'd stick around in some form. If you're in the home office, you should fear for your job. If you're in Volition you should fear what happens if a sale takes too long and cash runs out, but otherwise you have a future.

But what will ultimately happen if this is successful is that someone will own THQs value but not most of their debt (some of their purchase goes to that debt.) This leaves THQs only overhead being things like salaries and occupancy. They're mostly a healthy company like that, which is why they're doing this, but they saw no way to get out on their own.