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The Woes Of THQ Continue

Perhaps this could be construed as a joke concerning that it’s the start of a new year yet more problems are arising, but once again there’s drama in the world of THQ.  After a string of failed projects, bad business decisions, and similar things of that ilk, THQ opted to go the easy route in a sense by allowing an investment group (Clearlake) to effectively buy the company and continue business as usual, at least that was the plan devised by THQ company brass.

However, the universe once again isn’t being kind to THQ as the would-be buy-out of the company is being halted, complete with potential courtroom drama to kick off early next week.  While it seemed like THQ was finally going to catch a break, the U.S. Trustee overseeing the Clearlake deal has filed an objection that could stall things for a short period of time.

The deal between THQ and Clearlake isn’t kaput by any means, but the objection raised by the U.S. Trustee does make some notable point such as company reimbursements being too high, and the general period in which the deal was completed being too short to gather the interest of other potential suitors.

As of now a small trial is set to start on Monday in which the involved parties will have the potential to hash things over and possibly put things on track once again. Right now according to those in the know, those steeped in the world of business who have five Blackberry devices and wear expensive suits, there are five different companies interested in purchasing THQ - at least certain parts of it.

When the news of THQ’s “rescue” by Clearlake was revealed it was believed by many that the company would be sold off piecemeal similar to other failed firms, but Clearlake supposedly doesn’t want to go that route, likely in the hopes of yielding a higher overall sum.

The exact companies interested in acquiring certain aspect of THQ are still being whispered about, one of which is Warner Bros.  A likely candidate since the start of THQ’s financial troubles, WB is currently in the due diligence state of seeing which Ips in THQ’s stable are worth acquiring, of which I assume Saints Row is high on the list.

The more business side of the video game industry may not be interesting to a lot of people, but I always find it to be amusing to see what goes on past the stage of developers trying to make masterpieces, PR teams dictating content, and games being thrown under the bus.  In a lot of ways THQ, mind you the business side of the company, had what was coming to them since they didn’t make the best decisions in the past; basically amounting to a scenario now in which they need to atone for their past sins against gamers and the industry in general.

More details on THQ’s continued problems, even in the wake of bankruptcy, will likely be revealed next week once the courtroom hearings begin.


[via DDInvesting]