THQ - Most assets sold - another auction in May - Crytek to buy Darksiders IP

[quote name='GUNNM']Will we finally see a mega man game when you guys take over?[/QUOTE]

I don't think anybody is THAT crazy.

... *ducks*
 
[quote name='GUNNM']Will we finally see a mega man game when you guys take over?[/QUOTE]
Of course, among other things...

Like an adventure game starring Q as an immortal school teacher and an adventure game explaining exactly what Hugo is looking for when he enters Street Fighting tournaments.

[quote name='j-cart']https://www.google.com/finance?client=ob&q=NASDAQ:THQI

You can't even see the drop!

As of 10:30am PST THQ dropped to 1.55, almost a 50% stock drop.[/QUOTE]
Holy fucking shit. That is ridiculous.
 
[quote name='CaptainJoel']Of course, among other things...

Like an adventure game starring Q as an immortal school teacher and an adventure game explaining exactly what Hugo is looking for when he enters Street Fighting tournaments.


[/QUOTE]And put elena in the game because no one else will.
 
[quote name='GUNNM']And put elena in the game because no one else will.[/QUOTE]
Elena's going to be the seedy woman that may have AIDs.
 
[quote name='Blaster man']At the top of the chart, chose the 5 day option. You can see it alright. It gaps down.[/QUOTE]


I should have been a bit clearer, the drop was so straight that you don't even see the decline :D

Never really played Saints Row series other than the first one very briefly, but I have purchases SR3 for friends. Certainly hope Volition is able to get through this okay.
 
[quote name='elessar123']Haven't sold mine yet. I mean, what's the remaining 25% going to get me? Jack shit. =P[/QUOTE]

I sort of regret selling because there's a small chance of a buyout. Most likely shareholders get wiped out but there's always a chance of a payday. If the shares go low enough I may buy back in for much less than I sold for.
 
you guys are all crazy i'm buying some tomorrow. Its the only current video game company where the president cares about games for gamers. (except maybe take-two but the chance to buy that is long gone) have some faith. they just need to make it to south park: stick of truth.
 
@tham1988

Not saying anything bad about THQ, but they just announced that all of their games are going to be delayed. Stick of Truth is delayed to sometime between April 2013 and March 2014.

This lower stock just means that they might have to become a smaller company than what they originally were.
 
[quote name='j-cart']@tham1988

Not saying anything bad about THQ, but they just announced that all of their games are going to be delayed. Stick of Truth is delayed to sometime between April 2013 and March 2014.

This lower stock just means that they might have to become a smaller company than what they originally were.[/QUOTE]

oh I know. I just think they will survive it all in the end. the biggest hurdle I'm curious about is how many copies of metro last light they need to sell to break even because they are fucked if they have unrealistic expectations, but I think it'll do good as a pc game just not on consoles. probably similar to however much xcom: enemy unknown sold
 
[quote name='tham1988']oh I know. I just think they will survive it all in the end. the biggest hurdle I'm curious about is how many copies of metro last light they need to sell to break even because they are fucked if they have unrealistic expectations, but I think it'll do good as a pc game just not on consoles. probably similar to however much xcom: enemy unknown sold[/QUOTE]

Did you listen to the conference call? I linked it earlier in the thread. It's only 12 minutes long. I suggest you listen before jumping on the THQ train. As I said, I may buy back in but not unless it goes much lower so that I can buy some shares and keep some of the cash I just got from selling.

You should note, the bonds had held steady at 60% of face value until the call. The funds that own the bonds have since been dumping. THQ has 100 million in bonds and the funds are dumping them for 24% of face value. So a $1,000 THQI bond is selling for $240.

http://cxa.gtm.idmanagedsolutions.c...nOption=2&TradeSize=&SortBy=0&ID=ODcyNDQzQUIy
 
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[quote name='blume3']Sucks I was kinda excited for the South Park game, and would/will play Saints Row 4.[/QUOTE]

Those will probably still come out.
 
In connection with the Company’s Credit Agreement with Wells Fargo Capital Finance, LLC (“Wells Fargo”), which was amended pursuant to Amendment Number One dated July 23, 2012 (collectively, as so amended, the “Credit Facility”), on November 7, 2012, the Company was informed by Wells Fargo that loan availability on the Credit Facility was less than 12.5% of the maximum revolver amount on one or more occasions as of and after the fiscal quarter ended September 30, 2012, and accordingly, one or more events of default have occurred under the terms of the Credit Facility, including the failure to comply with financial covenants for the fiscal quarter ended September 30, 2012. The Company is currently in discussions with Wells Fargo regarding the asserted defaults and believes that it will reach an agreement with Wells Fargo with respect to such defaults. Wells Fargo has continued to fund requests from the Company after September 30, 2012 while Wells Fargo and the Company attempt to reach an agreement. There can be no assurance, however, that the Company will achieve an agreement with Wells Fargo.
 
[quote name='Blaster man']Those will probably still come out.[/QUOTE]

From them? Or another company buying the finished game and releasing it? I feel bad for THQ, I've always dug the Smackdown games (even when they were trash the few times they were). This South Park game is easily my #1 want for next year. Really worried about it not getting released.
 
[quote name='advanced']From them? Or another company buying the finished game and releasing it? I feel bad for THQ, I've always dug the Smackdown games (even when they were trash the few times they were). This South Park game is easily my #1 want for next year. Really worried about it not getting released.[/QUOTE]
Those games are almost done. Either a reorganized THQ comes out of bankruptcy and releases them or they're sold in bankruptcy. It's also possible that the debt holders take a haircut and the current THQ lives on but...we'll see.
 
Also keep in mind that Wells Fargo might not want them to go bankrupt. There may be another way to keep the company around but the current share holders are going to get fucked (with a capital "F").
 
[quote name='Blaster man']Those games are almost done. Either a reorganized THQ comes out of bankruptcy and releases them or they're sold in bankruptcy. It's also possible that the debt holders take a haircut and the current THQ lives on but...we'll see.[/QUOTE]
An Obsidian game is never almost done.
 
[quote name='The Crotch']An Obsidian game is never almost done.[/QUOTE]
I agree but let me put this out there. I can promise you that THQ or some other entity is going to release ALL those games eventually.
 
Well, looks like it's getting worse... Kind of curious if Disney will drop in and buy them up so they can have their own in-house game developer.
 
Eh, anyone could tell it would go down like this. Soon as they said their success depended on one game, it was over. You can't survive off one franchise in this business anymore; you need those low risk titles to offset overhead costs or else the bigger projects will bring you down, such as this has. Can't say I've cared about anything THQ in years. Not since PS1 at least.
 
I have a conspiracy theory about them running out of cash. Without going into details of the SEC filings, let me summarize them. Jason rubin has a bunch of stock options that only vest if the share price does well. He also has matching shares if he buys 1.5 million dollars with of shares. He has until the end of March to buy the shares or he loses that. The massive stock options vest immediately if the company's ownership changes by 10% or more. As of he end of September they were nowhere near a default on the credit line. So why would they default about one month later?

I think they have cash on hand. They pushed their games back and defaulted early. I wager the banks and bond holders will end up owning a huge portion of the company in the near future. This ownership change will give Rubin tons of free shares in the newly stabilized company. If they didn't change ownership for a few more months he wouldn't have time to make the stock purchases after the stock stabilized. I think they are forcing the company into default which hurts shareholders and gives executives a giant payday.
 
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[quote name='TheLongshot']Or becomes a zombie game like Kingdoms Of Amalur, where there is no one to authorize discounts, so it sells at full price forever.[/QUOTE]

EA had KoA on sale through Origin on the PC at one point for $15 or so I think.
 
[quote name='icebeast']EA had KoA on sale through Origin on the PC at one point for $15 or so I think.[/QUOTE]

I'm talking about the situation on Steam where it can't go on sale because it was direct from the developer, rather than through EA. Since THQ is a publisher as well as a developer, I'm thinking of a similar situation is possible, tho maybe not likely.
 
http://finance.yahoo.com/news/thq-provides-credit-facility-announces-222300550.html

THQ Inc. (THQI) announced today that it has entered into a forbearance agreement with Wells Fargo Capital Finance, LLC. Under the agreement, Wells Fargo has agreed to forbear from exercising its rights and remedies against THQ and its subsidiaries with respect to previous events of default under its credit facility. The period of the forbearance currently extends to January 15, 2013, during which time Wells Fargo has agreed to make additional loans to the company subject to the terms and conditions of the forbearance agreement.
Additionally, THQ announced that it has entered into exclusive negotiations with a financial sponsor regarding financing alternatives which may result in, among other things, significant and material dilution to shareholders. Information concerning the identity of the sponsor, deal size, structure and/or timing will not be disclosed until such time negotiations have concluded. There can be no assurance these negotiations will result in a transaction.
“We are pleased to have reached an agreement with Wells Fargo. This agreement enables us to continue focusing on bringing our games in development to market,” said Brian Farrell, THQ’s Chairman and Chief Executive Officer. “Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”
THQ also announced today the resignation of Paul Pucino, Executive Vice President and Chief Financial Officer. The Company is evaluating its alternatives with respect to the Chief Financial Officer role, and has retained FTI Consulting to assist its finance and accounting team.
“We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavors,” commented Farrell.





http://venturebeat.com/2012/11/20/t...potential-financing-alternatives-cfo-resigns/


THQ is in shambles, but it’s making moves to keep its developers’ doors open.
The publisher announced today that it’s chief financial officer, Paul Pucino, has resigned.
“We would like to thank Paul for his significant contributions over the past four years and wish him well in his future endeavor,” said THQ chief executive officer Brian Farrell in a press release.
This news came coupled with an announcement that THQ has entered into an agreement with Wells Fargo, which owns the publisher’s debt, that will prevent the bank from taking harsh actions against THQ through January 2013. In that time, Wells Fargo will additional loans to the Saints Row The Third publisher.
“We are pleased to have reached an agreement with Wells Fargo. This agreement enables us to continue focusing on bringing our games in development to market,”said Farrell. “Meanwhile, we are evaluating financial alternatives that will transition the company into its next phase.”
Said “financial alternatives” may come as a result of exclusive negotiations that THQ is in with an unnamed financial sponsor. The identity of this mysterious entity will remain shrouded until the two companies end negotiations. THQ is warning investors that the results of these talks made end in the significant dilution of the corporation’s stock.
THQI is currently trading at $1.25 on the NASDAQ.
 
For those of you that are confused, dilution is just what it sounds like. Current shareholders right now own 100% of the company. If someone comes in and gives THQ cash in exchange for 60 million shares then current shareholders are diluted from 100% ownership to only 10%. The details are not yet out. It could be anywhere from 50% to 99% dilution.
 
[quote name='Blaster man']For those of you that are confused, dilution is just what it sounds like. Current shareholders right now own 100% of the company. If someone comes in and gives THQ cash in exchange for 60 million shares then current shareholders are diluted from 100% ownership to only 10%. The details are not yet out. It could be anywhere from 50% to 99% dilution.[/QUOTE]

So is that good news for the company and bad news for the investors?
 
[quote name='INMATEofARKHAM']So is that good news for the company and bad news for the investors?[/QUOTE]

It could be good news for investors if they aren't creating that many new shares. In July the reverse split lowered the share count from 68 million to 6.8 million shares. THQ maintained the ability to issue up to 255 million shares without shareholder approval. Right now the share price is super low and even if the number of outstanding shares went back to 68 million, if the company is in a better financial state then it could help current owners.

The worry is that if they give this guy 80-100 million shares plus give bond holders 80-100 million shares to forgive the bond debt then the current owners would be diluted to such an extent that its hard to imagine share prices going up for them for a long time.

I'm waiting to see what happens before even considering buying shares again.
 
So, if THQ ultimately does go under, how does that affect Volition, Relic, etc. at this point? Would EA or Activision buy the rights to publish Saints Row 4 and Space Marine 2 (or whatever Relic is actually developing)? Are those games still being developed on schedule right now, or do Volition et al. have to wait until the issues with THQ are sorted out?
 
Development teams could make it out okay, however their flagship titles could be lost if THQ ends up selling the IPs to retain their company.

If what Blaster Man says ends up being true, selling IPs is not the gameplan. THQ will just try to use the stock dilution to re-finance their games that are on hold.
 
[quote name='INMATEofARKHAM']So is that good news for the company and bad news for the investors?[/QUOTE]

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.

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