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: IBM earnings dip as sales fall again

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

IBM earnings dip as sales fall again

7 hours ago

Technology heavyweight IBM reported Monday lower profits in the first quarter following another drop in revenues, this time partly due to the strong dollar.

Global, Chinese automakers debut new car models

18 hours ago

Ford showed off its new Taurus and Nissan unveiled a midsize sedan designed for China on Monday at a Shanghai Auto Show that highlighted the commercial resurgence of lower-priced Chinese auto brands.

Germany still has some way to go to 'smart factories'

Apr 19, 2015

Collaborative robots and intelligent machinery may have wowed the crowds at this year's Hannover Messe, but experts see German industry as having some way to go towards incorporating them on factory floors ...

Taiwan factory workers win $18 mn over cancer deaths

Apr 17, 2015

Workers from a factory in Taiwan which leeched toxic chemicals they say resulted in 200 deaths from cancer and more than 1,000 other cases of the disease won a Tw$564.45 million ($18 million) payout from US electronics company ...

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.