Bankruptcy Court Approves THQ Asset Sales, Execs Wave Farewell
Today, the U.S. Bankruptcy Court approved the motion to move forward with the auction of THQ’s assets to an assortment of buyers, which was made public yesterday. THQ mentioned in a press release this morning that it expects the court to issue a formal order confirming the sale tomorrow.
The motion approved the sale of several previously-owned assets, including Turtle Rock Studios’ game, Evolve (to Take-Two for $10.9 million), Relic Studios (to Sega for $26.6 million), Homefront 2 (to Crytek for $0.5 million), Volition and Metro: Last Light (to Koch Media for $22.3 million and $5.9 million respectively), as well as THQ Montreal and South Park: The Stick of Truth (to Ubisoft for $2.5 million and $3.3 million respectively).
Through these sales, THQ will receive just about $72 million, rounding the estimated value of the company’s assets to roughly $100 million (this includes assets not included in the sale, such as Vigil and its Darksiders franchise, which have yet to find a home).
Several qualified bids have been submitted for the company prior to January 22 when they were reviewed by THQ and its creditor committee. After a 22 hour auction process, the successful bidders were chosen and the hearing ended. Many of the ten bids approved were for independent assets, while some were for the entirety of THQ.
Sales are expected to close tomorrow. Not a good day to bounce a check, one imagines.
Included in the press release was a short note from both Brian Farrell, Chairman and CEO of THQ, and Jason Rubin, President, concerning the finality of the publisher’s closure:
Farrell: “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.”
Rubin: “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.”