Originally Posted by INMATEofARKHAM So is that good news for the company and bad news for the investors?

Investors should be happy if the THQ share price is greater than zero in 6 months. It is to the point where they cannot really afford to make much of a point, since the company has debts > assets to the point where a liquidation is not really in their favor.

I'm not sure what's going on with THQ but bonds are selling at 9% of face value. At the current market rate, THQ's 100 million in debt is worth only 9 million dollars. Could it be that a bankruptcy is almost here? We know the end game is close.

Aaaaand bankruptcy.

http://www.gamasutra.com/view/news/1...8Q_CHA.twitter

Originally Posted by The Crotch Aaaaand bankruptcy. http://www.gamasutra.com/view/news/1...8Q_CHA.twitter

So... Chapter 11 bankruptcy means it will restructure its debt but stay in business, right? The games that are in development at its studios will remain on track?

With THQ declaring bankruptcy, you think we'll be seeing Hulk Hogan doing promo spots geared towards companies willing to rent their IPs?

"OOOOH YEAH, BROTHA. WE GOT DARKSIDERS AND SAINT'S ROW, ALL WHICH CAN BE YOURS FOR THE LOW, LOW COST OF $200 A WEEK."

Found another article with some more numbers and info.

http://www.polygon.com/2012/12/19/37...dios-and-games

They say no changes - but who knows what happens to those projects after the sale - that is, if they can sell them.
"THQ says its publishing business will continue "without interruption during the sale period" and that development continues at the company's owned studios."

Originally Posted by Ryuukishi So... Chapter 11 bankruptcy means it will restructure its debt but stay in business, right? The games that are in development at its studios will remain on track?

Basically Chapter 11 allows THQ to say "Hey federal government, we can't pay it all off. However if you help us, we will be able to operate in a functional capacity. We still have products, we can still do this."

This is a financial restructuring that is going on with THQ and filing for a chapter 11 is a smart business move, a very smart one. Cleans their slate and allows them to still release their current ongoing products.

Maybe we could pool the Child's Play donations and buy THQ and give that to children everywhere for Christmas.

Shareholders will probably lose everything glad I sold at $1.38 (80% loss).

Aww man, this is disappointing when a mostly quality publisher goes under largely because of just one particular bad product (U Draw).

Originally Posted by RedvsBlue Aww man, this is disappointing when a mostly quality publisher goes under largely because of just one particular bad product (U Draw).

It was not just one thing that went bad. THQ made a lot of mistakes in the past few years, U Draw was just the big picture blame.

We all knew this day was coming, it was just a matter of when. I don't have much hope for the individual IPs/studios with it being sold to a private equity company.

Originally Posted by j-cart It was not just one thing that went bad. THQ made a lot of mistakes in the past few years, U Draw was just the big picture blame.

Yeah, but from what we've heard that seems to be the biggest and hardest hit they took which has had them on the ropes ever since.

uDraw cost them 100 million dollars in terms of the loss from it. Then they cancelled Saints Row 3 Enter the Dominatrix, had a failure launch of Darksiders 2, and delayed all of next years games until March. When they announced the march delays I sold.

If you look at my post above, it now makes perfect sense why the bonds were worth so little. THQ is selling for 60 million dollars. Wells Fargo's credit line is at least 20 million. They get paid back first. Then the rest (at most 40 million assuming the loan with WF hasn't increased in the last month) goes to the bond holders. Shareholders get $0.00 unless they win some lawsuits. We will see a bunch of them too. A lot of seemingly iffy stuff was going on and/or not being disclosed (at least so it appears to me).

Originally Posted by Blaster man uDraw cost them 100 million dollars in terms of the loss from it. Then they cancelled Saints Row 3 Enter the Dominatrix, had a failure launch of Darksiders 2, and delayed all of next years games until March.

$100 million dollars in actual cost and who knows how much in potential lost sales/profit from the allocation of resources to it. Definitely one of the most severe hits they took in recent years.

Originally Posted by RedvsBlue $100 million dollars in actual cost and who knows how much in potential lost sales/profit from the allocation of resources to it. Definitely one of the most severe hits they took in recent years.

In their 2012 Q4 conference call they specified a 100 million dollar write Dow. From uDraw losses. That's what I'm talking about. They literally accounted for 100 million in losses that quarter.

No matter how you look at it, that's a huge loss for a quarter for any publisher, but considering THQ has been practically hurting for several years now it was the nail in the coffin so to speak.

Sad too b/c they produced some nice games over the years. I loved the Dark Sider Series, Red Faction Arm, Saints Rows were pretty good and Iwas looking forward too Obsidian's South Park Stick of Truth as did others.

Maybe with the restructuring something good will come of this for the company, investors are screwed most likely but I would like to see THQ saved or purchased by decent company/studio. Disney/Marvel wouldn't be so bad I don't think but if Activision or EA purchases them I'll most likely ignore all those franchises from here on out. They ruin everything they touch for the most part.

Originally Posted by JN25WIL No matter how you look at it, that's a huge loss for a quarter for any publisher, but considering THQ has been practically hurting for several years now it was the nail in the coffin so to speak. Sad too b/c they produced some nice games over the years. I loved the Dark Sider Series, Red Faction Arm, Saints Rows were pretty good and Iwas looking forward too Obsidian's South Park Stick of Truth as did others. Maybe with the restructuring something good will come of this for the company, investors are screwed most likely but I would like to see THQ saved or purchased by decent company/studio. Disney/Marvel wouldn't be so bad I don't think but if Activision or EA purchases them I'll most likely ignore all those franchises from here on out. They ruin everything they touch for the most part.

Dude, Company of Heroes 2, Stick of Truth, and Metro Last Light are all still going to come out under the THQ name. The chapter 11 is a good thing, not a bad thing for THQ.

http://www.gamespot.com/news/thq-fil...ruptcy-6401772


What does this mean for the future of Metro: The Last Light, Saints Row, South Park: The Stick of Truth, Homefront 2 (lol) and future Company of Heroes games? Discuss.

Kinda glad I got that humble bumble bundle before the shit hit the fan.

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I expect lawsuits for many years regarding this. It was never disclosed in an SEC filing that Jason Rubin (the company president) had a personal relationship with Centerview, the guys that were brought in to work out the "best" deal for THQ. Apparently Saint's Row sold 5 million copies yet the entire company is worth only 60 million dollars. I have a hard time believing that.

http://www.latimes.com/entertainmen...-games-raise-capital-20121105,0,7561290.story
Centerview senior advisor Skip Paul has close ties to Rubin, who joined THQ in May. Paul worked with Rubin when he was an executive at Universal Studios and more recently invested in Rubin's digital media start-up Flektor, which was acquired by Myspace.

http://www.startup-review.com/blog/f...-20-wisdom.php
Flektor co-founders, Jason Rubin and Andy Gavin had previously co-founded Naughty Dog, a studio responsible for games such as Crash Bandicoot and Jak and Daxter that yielded ~$1B in retail sales. Despite such impressive credentials that could have afforded them relatively easy access to seed capital, the founding team (Jason, Jason, and Andy) opted to primarily self-fund the company, although they did take some investment from a personal friend, Skip Paul.