THQ Receives Approval To Sell Assets
After what must seem like an endless year and a half, the saga of THQ’s tremendous financial woes is now nearing its end, as the company has gained approval in US Bankruptcy court to conduct bidding on its assets after reaching an agreement between creditors, and a potential buyer as part of the previously announced stalking horse bidder arrangement agreed to back in December.
The court has approved Clearlake Capital Group, L.P.’s bid to purchase the company outright, as the start of an auction process which will conclude on January 22. Other interested parties will be allowed to bid on the company as a whole, or on specific company assets, but the sale of those assets in individual chunks would only be permitted if the amount generated by piecemeal sale exceeds that generated by the highest bid for the company as a complete entity.
If the company is purchased in full, things will continue much as they have been – THQ will remain THQ, albeit under new ownership, (though how this would affect games in preproduction but not yet underway remains to be be seen; it should be assumed that popular titles like Saint’s Row 4 will continue regardless.) A sale of assets to multiple buyers would complicate things considerably, and speculation as to how would at this point be premature.
In a press release, THQ CEO Brian Farrell said “Today’s ruling provides a clear path. We will now know definitively by Jan. 23rd where we stand. We appreciate the support of our employees, partners, and suppliers now more than ever.”
We will be following this story closely as it reaches its end. Come January 23 we will know once and for all the fate of the company.