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: China's Xiaomi raises more than $1 bn in funding

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

China's Xiaomi raises more than $1 bn in funding

4 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.