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THQ Breakup Details Confirmed

The details from yesterday's report on the breakup of now-defunct THQ can now be confirmed. Koch Media owned Deep Silver announces the acquisition of developer Volition, saying that this comes with the IP for the Metro series of shooters as well as Saints Row, the highly regarded open world action series, saying: "Koch Media and Deep Silver will roll out future plans for each franchise in the coming months." According to a tweet from Distressed Debt Investing, this came at the price of $22.3 million. That same tweet says SEGA paid $26 million for Relic, Ubisoft (who tweeted confirmation of their purchases) paid and $2.5 million for THQ Montreal, and that Take-Two shelled out $11 million for Evolve (which apparently includes Left 4 Dead developer Turtle Rock Studios), and Develop adds that 1666 is one of the IPs Ubisoft picked up along with THQ Montreal. Another tweet says Koch paid $5.8 million for Metro, Crytek picked up the rights to Homefront (not Homeland, as they say) for $500K, and Ubisoft's tab for South Park: the Stick of Truth was $3.2 million. They also affirm there were No bids for Vigil (though IGN reports Bayonetta developer Platinum Games may still make a play for the Darksiders studio). What remains of THQ announces the court has granted a motion to approve these sales, offering the following overview:

THQ Inc. (OTC: THQIQ), a leading worldwide developer and publisher of interactive entertainment software, today announced that the U.S. Bankruptcy Court has granted a motion to approve a sale of the majority of THQ’s assets to multiple buyers. The company expects the Court to enter a formal order tomorrow.

The Court approved the sales of three of THQ’s owned studios and games in development, as well as Evolve, a working title under development at Turtle Rock Studios, Homefront 2, Metro: Last Light and South Park: The Stick of Truth. Under the terms of the agreements with the successful and approved bidders, the THQ estate will receive approximately $72 million, making the total estimated value of the estate $100 million including certain assets and other intellectual properties which were excluded from the sale.

The Court approved the sale of Relic Studios to Sega Corporation for $26.6 million; the sale of Volition Inc. and Metro: Last Light to Koch Media GmbH for $22.3 million and $5.9 million, respectively; the sale of Homefront 2 to Crytek GmbH for $0.5 million; the sale of Evolve to Take-Two Interactive Software, Inc. for $10.9 million; and the sale of THQ Montreal and South Park: The Stick of Truth to Ubisoft LLC for $2.5 million and $3.3 million, respectively. Excluded from the sales were the company’s publishing businesses, Vigil Games, and certain other assets and intellectual properties, which will remain part of the THQ estate and will continue in the Chapter 11 process.

Brian Farrell, Chairman and CEO of THQ, noted, “While we had hoped that the restructuring process would allow the company to remain intact, I am heartened that the majority of our studios and games will continue under new ownership. It has been my pleasure to work alongside this great group of people, and I am proud of the imaginative and artistic games that our team has created. Although we will no longer be able to work together with a unified mission, I am confident that the talent we have assembled will continue to make an impression on the video game industry. For those whose positions are not likely to continue, I sincerely regret this outcome and we will be meeting with you over the next few days to discuss the transition.”

Jason Rubin, President of THQ, added, “I was brought in eight months ago to help turn this ship around, and while I’m disappointed that we could not effect a sale for the entire operating business, I am pleased that the new buyers will be providing jobs to many of our very talented personnel. When we first announced the sale process, I said I would be happy if the company’s games and people had a bright future, even if it meant I did not have a job at the end of it. And I still feel that way.”

The new owners have not articulated their plans for the assets, or their intentions to extend employment to THQ employees included in the sale. THQ expects the new owners to extend employment to most employees and to continue development of the games they purchased that are currently in development. The assets that are not included in the sale agreements will remain part of the Chapter 11 case. THQ will continue to seek appropriate buyers, if possible.

THQ will continue to employ a small number of headquarters staff beyond January 25 to assist with the transition.

Qualified bids received by January 22 were reviewed by the company and the creditors committee. Through an auction process that lasted 22 hours yesterday and today, the successful bidders were determined, and the hearing to approve the sales took place this afternoon. Ten bidders participated in the proceedings, including bids for the entire company as well as for individual assets. The sales are expected to close tomorrow, January 24.

Clearlake Capital Group, L.P. had submitted a “stalking horse” bid for substantially all of THQ’s assets in December 2012. In accordance with Section 363 of the U.S. Bankruptcy Code, the Court supervised an auction to determine the highest and best bid(s) for the company’s assets in accordance with the bid procedures approved by the Court. Clearlake will receive a break-up fee of $1 million, as stated in its stalking horse asset purchase agreement.

THQ and its domestic business units filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Delaware on Dec. 19, 2012. The Chapter 11 case will continue for THQ.

For additional information about THQ, please visit www.thq.com. For information regarding the Chapter 11 case, please visit www.kccllc.net/thq.

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37 Replies. 2 pages. Viewing page 1.
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37. Re: THQ Breakup Details Confirmed Jan 25, 2013, 18:39 Orphic Resonance
 
netnerd85 wrote on Jan 24, 2013, 21:01:
Orphic Resonance wrote on Jan 24, 2013, 20:23:
damn this kid's got something to prove dont he
Have you played Red Faction 1? it was awesome, back in the day...

dude i played pong back in the day

on an atari

and yes i played red faction too
 
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36. Re: THQ Breakup Details Confirmed Jan 25, 2013, 09:02 Verno
 
StingingVelvet wrote on Jan 24, 2013, 15:41:
Creston wrote on Jan 24, 2013, 13:03:
That's a fair point. I should amend my statement to "the dumbest fucking decision Volition OR THQ ever made." :)

I think linear can have value over non-linear. I'm not sure which of those games is better because they're so different, but Armageddon focusing on linear shooting with that cool tech was a very enjoyable experience for me. Some people dislike open games, so perhaps they liked it much better.

In any event it did seem to be a financially poor decision because everyone ripped them apart for the change.

The game being really average didn't exactly help either to be fair.
 
Avatar 51617
 
Playing: Far Cry 4, Prison Architect, DriveClub
Watching: Tusk, The Equalizer, The Homesman
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35. Re: THQ Breakup Details Confirmed Jan 25, 2013, 01:16 netnerd85
 
jdreyer wrote on Jan 24, 2013, 22:53:
netnerd85 wrote on Jan 24, 2013, 21:01:
Orphic Resonance wrote on Jan 24, 2013, 20:23:
damn this kid's got something to prove dont he
Have you played Red Faction 1? it was awesome, back in the day...

That was one of the first games to introduce destructible environments, right? But I think all the destructible parts were labeled with X's? IIRC.
Yes and no not at all. See below:

http://www.youtube.com/watch?v=MAeU7nPtWFA

Lol, funny to see it stand there by a thread... old tech, but fun! made for great MP.
 
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34. Re: THQ Breakup Details Confirmed Jan 24, 2013, 22:53 jdreyer
 
netnerd85 wrote on Jan 24, 2013, 21:01:
Orphic Resonance wrote on Jan 24, 2013, 20:23:
damn this kid's got something to prove dont he
Have you played Red Faction 1? it was awesome, back in the day...

That was one of the first games to introduce destructible environments, right? But I think all the destructible parts were labeled with X's? IIRC.
 
Avatar 22024
 
"Microsoft is the absent minded parent of PC gaming" - Verno
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33. Re: THQ Breakup Details Confirmed Jan 24, 2013, 21:01 netnerd85
 
Orphic Resonance wrote on Jan 24, 2013, 20:23:
damn this kid's got something to prove dont he
Have you played Red Faction 1? it was awesome, back in the day...
 
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32. Re: THQ Breakup Details Confirmed Jan 24, 2013, 20:37 StingingVelvet
 
DangerDog wrote on Jan 24, 2013, 15:43:
StingingVelvet wrote on Jan 24, 2013, 15:38:
Sega getting Relic is awesome, looking at Total War. I hope they buy the Homeworld IP when the legacy IPs go on sale.

Except for the often heard comments about Sega having financial troubles themselves. I guess they're not that broke if they can fork over $26.6 million.

They have a LOT of money in the bank supposedly, their problem was just that all their AAA stuff was losing money. So they reigned things in a lessened their output, which makes sense. A lot of other companies should be doing the same.
 
Avatar 54622
 
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31. Re: THQ Breakup Details Confirmed Jan 24, 2013, 20:23 Orphic Resonance
 
netnerd85 wrote on Jan 24, 2013, 19:46:
Creston wrote on Jan 24, 2013, 13:03:
nin wrote on Jan 24, 2013, 11:10:
That's still the dumbest fucking decision Volition ever made.

We're assuming it was their decision...


That's a fair point. I should amend my statement to "the dumbest fucking decision Volition OR THQ ever made."

Creston
Playing "Guerrilla" doesn't make you a Red Faction fan. There were 2 games before Guerrilla, Red Faction 1 was awesome. Best game of 2000-2005 period. The MP is pure gold.

Red Faction has NOTHING to do with being open world. If you think that, you have no idea what the series is about.

Eager to see what happens to the series! need intel asap!

damn this kid's got something to prove dont he
 
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30. Re: THQ Breakup Details Confirmed Jan 24, 2013, 19:46 netnerd85
 
Creston wrote on Jan 24, 2013, 13:03:
nin wrote on Jan 24, 2013, 11:10:
That's still the dumbest fucking decision Volition ever made.

We're assuming it was their decision...


That's a fair point. I should amend my statement to "the dumbest fucking decision Volition OR THQ ever made."

Creston
Playing "Guerrilla" doesn't make you a Red Faction fan. There were 2 games before Guerrilla, Red Faction 1 was awesome. Best game of 2000-2005 period. The MP is pure gold.

Red Faction has NOTHING to do with being open world. If you think that, you have no idea what the series is about.

Eager to see what happens to the series! need intel asap!
 
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29. Re: THQ Breakup Details Confirmed Jan 24, 2013, 17:52 killer_roach
 
jacobvandy wrote on Jan 24, 2013, 16:44:
killer_roach wrote on Jan 24, 2013, 15:42:
You really think they'd move the franchise away from CA?

How about a collaboration on Total Warhammer 40k? CA handles the scope and scale of the campaign map and all those political and economic interactions, while Relic figures out a way to make real-time battles with thousands of troops much less tedious and boring than it often turns out to be.

That sounds absolutely bats*** insane.

Not surprisingly, I love it.
 
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28. Re: THQ Breakup Details Confirmed Jan 24, 2013, 16:49 jdreyer
 
zombiefan wrote on Jan 24, 2013, 10:43:
https://www.youtube.com/watch?v=9Jn8K8EA7-Q

What are you trying to say? That THQ was the wicket witch? I thought they were putting out pretty good stuff actually.
 
Avatar 22024
 
"Microsoft is the absent minded parent of PC gaming" - Verno
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27. Re: THQ Breakup Details Confirmed Jan 24, 2013, 16:44 jacobvandy
 
killer_roach wrote on Jan 24, 2013, 15:42:
You really think they'd move the franchise away from CA?

How about a collaboration on Total Warhammer 40k? CA handles the scope and scale of the campaign map and all those political and economic interactions, while Relic figures out a way to make real-time battles with thousands of troops much less tedious and boring than it often turns out to be.
 
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26. Re: THQ Breakup Details Confirmed Jan 24, 2013, 15:43 DangerDog
 
StingingVelvet wrote on Jan 24, 2013, 15:38:
Sega getting Relic is awesome, looking at Total War. I hope they buy the Homeworld IP when the legacy IPs go on sale.

Except for the often heard comments about Sega having financial troubles themselves. I guess they're not that broke if they can fork over $26.6 million.
 
Avatar 6174
 
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25. Re: THQ Breakup Details Confirmed Jan 24, 2013, 15:42 killer_roach
 
StingingVelvet wrote on Jan 24, 2013, 15:38:
Sega getting Relic is awesome, looking at Total War. I hope they buy the Homeworld IP when the legacy IPs go on sale.

You really think they'd move the franchise away from CA?

Agreed on Sega buying Homeworld, though, although I'm still surprised Sega ended up being the big winner out of this, considering they're typically thought of as struggling pretty mightily themselves.
 
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24. Re: THQ Breakup Details Confirmed Jan 24, 2013, 15:41 StingingVelvet
 
Creston wrote on Jan 24, 2013, 13:03:
That's a fair point. I should amend my statement to "the dumbest fucking decision Volition OR THQ ever made." :)

I think linear can have value over non-linear. I'm not sure which of those games is better because they're so different, but Armageddon focusing on linear shooting with that cool tech was a very enjoyable experience for me. Some people dislike open games, so perhaps they liked it much better.

In any event it did seem to be a financially poor decision because everyone ripped them apart for the change.
 
Avatar 54622
 
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23. Re: THQ Breakup Details Confirmed Jan 24, 2013, 15:38 StingingVelvet
 
Sega getting Relic is awesome, looking at Total War. I hope they buy the Homeworld IP when the legacy IPs go on sale.  
Avatar 54622
 
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22. Re: THQ Breakup Details Confirmed Jan 24, 2013, 13:03 Creston
 
nin wrote on Jan 24, 2013, 11:10:
That's still the dumbest fucking decision Volition ever made.

We're assuming it was their decision...


That's a fair point. I should amend my statement to "the dumbest fucking decision Volition OR THQ ever made."

Creston
 
Avatar 15604
 
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21. Re: THQ Breakup Details Confirmed Jan 24, 2013, 12:37 Redmask
 
nin wrote on Jan 24, 2013, 11:10:
That's still the dumbest fucking decision Volition ever made.

We're assuming it was their decision...


It was unfortunately, they practically begged to be able to do the project. THQ wanted a sequel to Red Faction Guerilla, not exactly a surprise since it sold higher than expectations.

I'm not clear how this whole bankruptcy thing works...

First off, if they could have gotten $26 million for Relic, couldn't they have just done that earlier and kept going?

Secondly, are they still bankrupt after getting $72 million?

A court determines the list of creditors to be paid first and determines if assets needs to be sold in order to meet the companys outstanding liabilities. Usually the hardest debt to disclose is paid first although the principles are a bit different between personal and business bankruptcy. They had obligations in the hundreds of millions and selling the studios would have left the company destitute. The hope was that they could find a company to buy them and continue operating as a subsidiary, they actually did manage this but the court rejected the proposal as they felt creditors would get more money from the assets being individually sold off.

THQ still technically exists but it is bankrupt and effectively defunct without any way to generate revenue.
 
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20. Re: THQ Breakup Details Confirmed Jan 24, 2013, 12:32 Kegaro
 
Alamar wrote on Jan 24, 2013, 11:47:
I'm not clear how this whole bankruptcy thing works...

First off, if they could have gotten $26 million for Relic, couldn't they have just done that earlier and kept going?

Secondly, are they still bankrupt after getting $72 million?

I realize I'm looking at these numbers as insane amounts of money, and they may not be (in this scenario), but still... Quality games are made for 10% of some of those numbers.

-Alamar

First they have to use the money to pay off any and all debt. Then they will have to pay the legal team. Then, if there is anything left they will have to pay share holders... So basically they are still broke and finished as a company.
 
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19. Re: THQ Breakup Details Confirmed Jan 24, 2013, 12:28 Acleacius
 
Damn for a second, I thought Volition (instead of Surreal) had done Drakan Order of the Flame and PC gamers might actually get a sequel! Oh well, I'll settle for a quality sequel to Summoner, made to be played on the PC if not the lead platform.  
The people can always be brought to the bidding of the leaders.That is easy.All you have to do is tell them they are being attacked and denounce the pacifists for lack of patriotism and exposing the country to danger.It works the same way in any country.
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18. Re: THQ Breakup Details Confirmed Jan 24, 2013, 11:47 Alamar
 
I'm not clear how this whole bankruptcy thing works...

First off, if they could have gotten $26 million for Relic, couldn't they have just done that earlier and kept going?

Secondly, are they still bankrupt after getting $72 million?

I realize I'm looking at these numbers as insane amounts of money, and they may not be (in this scenario), but still... Quality games are made for 10% of some of those numbers.

-Alamar
 
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37 Replies. 2 pages. Viewing page 1.
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