Videogame maker THQ files for bankruptcy

Dec 19, 2012

The US videogame company behind popular titles "Saints Row" and "Red Faction" said on Wednesday it had filed for bankruptcy while wrangling to sell its assets to "a stalking horse bidder."

California-based . planned to continue operating its business while positioning itself to be taken over.

"We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible," THQ chairman Brian Farrell said in a release.

"The sale and filing are necessary next steps to complete THQ's transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ's deep bench of talent."

The company's operations outside of the United States were not included in the filing in US .

THQ's moves came as the traditional console videogame industry grapples to adapt to the booming popularity of games played on smartphones, , or at .

People are increasingly opting for inexpensive fun in "free-to-play" games which base revenues on optional in-game purchases such as added powers or virtual gear for on-screen characters.

THQ franchises include urban gang themed adventure "Saints Row" and shooter "Red Faction." The company has also published videogames based on films, professional wrestling, and mixed martial arts.

"We look forward to partnering with experienced investors for a new start," said THQ president Jason Rubin.

The company said that it planned no employee layoffs and that studios will continue to work on a "pipeline of games" including a Company of Heroes sequel.

Clearlake Capital Group acting as a "stalking horse bidder" allows THQ to accept competing offers, according to the company.

Explore further: Turner channels removed from Dish amid pact spat

add to favorites email to friend print save as pdf

Related Stories

Metal hazard from table wines

Oct 29, 2008

Potentially hazardous levels of metal ions are present in many commercially available wines. An analysis of reported levels of metals in wines from sixteen different countries, published in the open access Chemistry Central Jo ...

Director Cameron's company files for bankruptcy

Sep 11, 2012

(AP)—The digital production company founded by "Titanic" director James Cameron has filed for bankruptcy protection in the U.S. and Canada and reached a deal to sell its operating business to a private investment firm for ...

Peak of popularity a wistful memory for Wii

Dec 10, 2010

At Next-Gen Video Games, it has been two months since a customer bought a Nintendo Wii, the console that became a sensation for letting players swing a virtual tennis racket or steer a virtual car with a flick ...

Recommended for you

Turner channels removed from Dish amid pact spat

4 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

5 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

13 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0