THQ files for chapter 11 bankruptcy, will be sold to the highest bidder

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Yesterday afternoon we published a story about THQ’s indie games bundle, aptly named the Humble Bundle. A recent bundle of the same nature netted the struggling developer and publisher more than $5 million and it appeared they were ready to try their luck with a seventh follow-up bundle. That is, until we learned shortly after that THQ had filed for chapter 11 bankruptcy protection.

The company has reportedly entered into a “stalking horse” bid with investment firm Clearlake Capital Group. Under this type of agreement, anyone else looking to purchase THQ would have to offer more than the stalking horse bid, which in this case, is $60 million.

Up for grabs to the highest bidder are four studios (THQ Wireless, THQ Digital Studios Phoenix, Volition Inc. and Vigil Games) as well as all games that are currently in development. We already know they are working on a number of upcoming titles including South Park: The Stick of Truth, Company of Heroes 2, Metro: Last Light, Homefront 2 and a new Saints Row game.

THQ, originally founded as a toy manufacturer more than 20 years ago, was once valued at $2 billion when times were good. They’ve since fallen on hard times following a number creative and business missteps. They hired a new president in May to help right the ship but it seems it was a case of too little, too late.The company had a market value of just $11.3 million following trading earlier this week.

THQ says they will continue business as usual during the chapter 11 bankruptcy process.

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