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

All I know is that somebody better still publish Company of Heroes 2 once Relic finishes it up this spring. Don't want THQ's downfall to destroy that game.
 
A new deadline for the sale has been set, and THQ may be sold piecemeal, but only if the bids for individual assets add up to more than the highest whole company bid.
http://www.gamesindustry.biz/articles/2013-01-07-thq-allowing-bids-for-specific-titles
The US bankruptcy court has confirmed that although THQs assets can be bought individually when they go up for auction on January 22, bids will only be considered if the value generated by separate sales exceed the price offered by a bidder for the entire company...

All bids must be received by January 22 at 9am Eastern Time. The auction will be held at 3pm and the hearing on the sale at 9:30am on January 23 with closing occurring a day later.
Click to expand...
 
[quote name='Nogib']All I know is that somebody better still publish Company of Heroes 2 once Relic finishes it up this spring. Don't want THQ's downfall to destroy that game.[/QUOTE]

There's three games coming out in the next few months, Metro Last Light, South Park the Stick of Truth, and Company of Heroes 2. All three are so far along in development that someone is going to buy them and release them.

[quote name='marsilies']A new deadline for the sale has been set, and THQ may be sold piecemeal, but only if the bids for individual assets add up to more than the highest whole company bid.
http://www.gamesindustry.biz/articles/2013-01-07-thq-allowing-bids-for-specific-titles[/QUOTE]

Yep, that's because the judge in the case called them on their sweetheart deal that they tried for force down everyone's throats. They released a press release today stating that the piecemeal auction will only be allowed if it's final sale price is higher than the stalking horse bid (60 million). That's a giant no fucking kidding right there. No doubt they're still hoping that they'll get to hold onto the company. I really doubt that the auction will result in proceeds less than or equal to the stalking horse. I mean, Saint's Row 3 sold 5 million copies and Saint's Row 4 is schedule to be released later this year (info inside of Bankruptcy documents). A game that's maybe 6-9 months from release and will sell 5 million copies (assuming it doesn't do even better than SR3) is sure to be worth a lot of money...
 
[quote name='Blaster man']Yep, that's because the judge in the case called them on their sweetheart deal that they tried for force down everyone's throats. They released a press release today stating that the piecemeal auction will only be allowed if it's final sale price is higher than the stalking horse bid (60 million). [/QUOTE]
Not just the stalking horse bid. It's possible someone else may put a higher bid in for the whole company, which the piecemeal total would have to beat.
 
[quote name='Dead of Knight']What does this have to do with THQ? Should have gotten its own thread if anything.[/QUOTE]
Morgan Stanley is also thinking about layoffs. Mentioning it means the topic could go from specific to general and perhaps back to specific companies again. Majesco has also gone through some layoffs in its London offices. http://www.gamespot.com/news/major-layoffs-at-majesco-uk-report-6402164

It's too early to tell if it's part of a trend but you must always be on the lookout for when the axe may be coming for you.
 
[quote name='Spokker']Morgan Stanley is also thinking about layoffs...
It's too early to tell if it's part of a trend...[/QUOTE]
THQ hasn't laid anyone off yet, and if they get bought up as a whole company, they may not have to.
 
[quote name='Mr_hockey66']Ea is supposed to be buying the whole company. I like ea so this might be a good thing. I'd like to see what ea does with wwe.[/QUOTE]

Well..

EA published and developed WCW Mayhem, which was poorly received. To "reboot" the franchise, EA turned to AKI, developers of the WCW/NWO Revenge and World Tour, as well as WWF No Mercy and WWF Wrestlemania 2000, on the N64. AKI (currently known as syn Sophia) developed an engine that was to be used for WCW Mayhem 2, but Vince McMahon bought WCW and WCW Mayhem 2 was scrapped. The engine was recycled into Def Jam Vendetta, which was well received. They improved on the engine for Def Jam: FFNY, still a very popular game.

The point is that EA has a good relationship with AKI/syn Sophia, the developers of the WCW and WWF N64 games. If EA picks up the WWE license, there's good reason to be excited.
 
I liked the character creation aspect of Mayhem, but that was it. I expect that if EA does buy THQ and gets the WWE license they'll probably make a wrestling game more like the last Def Jam (which was preeeetty shitty). It's really sad that THQ went down. I just started playing WWE '13 around Christmas and God, that game is a slice of fried gold.
 
It's been reported that Double Fine is looking into the bankruptcy. I doubt they can buy the big games but maybe they can revive Red Faction or some other IP that may not have as much interest. I've never played a Double Fine game I didn't like so I'd be excited to see anything coming out of them.
 
Hmmm... That's actually pretty interesting. I kind of hope that someone gets the Alter Echo, Destroy All Humans, or the Outfit franchises and releases a new game.
 
[quote name='Blaster man']It's been reported that Double Fine is looking into the bankruptcy. I doubt they can buy the big games but maybe they can revive Red Faction or some other IP that may not have as much interest. I've never played a Double Fine game I didn't like so I'd be excited to see anything coming out of them.[/QUOTE]
Maybe they're looking to use the Saints Row IP for an adults-only spinoff of Kinect Party.
 
[quote name='Blaster man']It's been reported that Double Fine is looking into the bankruptcy. I doubt they can buy the big games but maybe they can revive Red Faction or some other IP that may not have as much interest. I've never played a Double Fine game I didn't like so I'd be excited to see anything coming out of them.[/QUOTE]

Double Fine doesn't really seem to fit with the main THQ franchises, especially with what they have been doing lately.
 
[quote name='Blaster man']It's been reported that Double Fine is looking into the bankruptcy...[/QUOTE]
I'm guessing they're looking to buy back the games they developed for THQ, Costume Quest and Stacking. I doubt they're looking to buy up any other IP.
 
[quote name='marsilies']I'm guessing they're looking to buy back the games they developed for THQ, Costume Quest and Stacking. I doubt they're looking to buy up any other IP.[/QUOTE]

This. Plus they don't have the money for anything else. fuck, they already used up the millions they got from that Kickstarter when the original goal was far less.
 
[quote name='Dead of Knight']This. Plus they don't have the money for anything else. fuck, they already used up the millions they got from that Kickstarter when the original goal was far less.[/QUOTE]
To be fair, the Kickstarter money isn't gone; [Double Fine] crunched the numbers in December and calculated the the money will be gone before the game is done if they continued at the same game scope and progress rate that they had up to that point.

With their original goal, Double Fine was planning for a much smaller adventure game with a shorter turnaround time. When the Kickstarter exceeded their goal, they expanded the scope of the game to something much larger, but it took a few months of development for them to realize that the new scope was too large.

They're now kicking in some money themselves, but also are going to scale back the game some, as well as try and improve the development progress. It's pretty much standard for every game that at some point in the development cycle they have to re-evaluate the status of the game and adjust accordingly to stay in-budget and on time.

Edit: But you are right that they don't have a few spare million lying around to spend on new properties.
 
[quote name='Mr_hockey66']Ea is supposed to be buying the whole company. I like ea so this might be a good thing. I'd like to see what ea does with wwe.[/QUOTE]

Can someone explain to me how EA is still in business? Every year I read their financial reports and all I see is red ink. Year, after fucking year.
 
[quote name='Monsta Mack']Can someone explain to me how EA is still in business? Every year I read their financial reports and all I see is red ink. Year, after fucking year.[/QUOTE]

Just checked, they have a positive EPS right now.
 
[quote name='Monsta Mack']Can someone explain to me how EA is still in business? Every year I read their financial reports and all I see is red ink. Year, after fucking year.[/QUOTE]

Same with Clear Channel. I don't get it. Their debt is due in 2016 so it's only a matter of time.
 
[quote name='The Crotch']They do have plenty of motivation to try and get those, though. Acquiring the rights to Psychonauts was one of the smarter things they've done, apparently.[/QUOTE]
I agree that they have motivation to buy back whatever publication rights THQ has to the games Double Fine made for them, and they may be able to scrounge up the money to do so. I'm just saying they're not likely to be grabbing any other properties that didn't originate from themselves.
 
Here's an article confirming that Double Fine is just interested in Costume Quest and Stacking:
http://www.gamespot.com/news/double-fine-interested-in-thq-assets-6402301
A Double Fine representative told GameSpot, "Double Fine owns the full intellectual property rights to Costume Quest and Stacking. However, THQ retains certain limited distribution rights that have not expired yet, and we are exploring our options with respect to those."
Click to expand...
 
Was expecting this news tomorrow (I guess it's finalized tomorrow), but THQ has announced to its employees that the company is being split up.
http://kotaku.com/5978429/this-is-the-letter-that-thq-sent-to-employees-today
To All THQ Employees:

We now have the answers we've been seeking through our financial restructuring and Chapter 11 case. While much will be written, here are the facts of the bids and auction that occurred:

Yesterday morning, we received a competing bid for the operating business, along with Clearlake's offer, and numerous offers for separate assets. During an auction process that lasted over 22 hours, the final conclusion was that the separate-asset bids would net more than a single buyer for the majority of the company. Shortly, we will, present the results to the U.S. Bankruptcy Court, which must concur with our assessment.

The proposed sales of multiple assets is as follows :

  • Sega agreed to purchase Relic
  • Koch Media agreed to purchase Volition and Metro
  • Crytek agreed to purchase Homefront
  • Take 2 agreed purchase Evolve and
  • Ubisoft agreed to purchase Montreal and South Park

We expect these sales to close this week.

Some assets, including our publishing businesses and Vigil, along with some other intellectual properties are not included in the sale agreements. They will remain part of the Chapter 11 case. We will make every effort to find appropriate buyers, if possible.

What this means for employees

We expect that most employees of the entities included in the sale will be offered employment by the new owners. However, we cannot say what these owners may intend, and there will likely be some positions that will not be needed under the new ownership. You should receive notice this week or early next week if the new owners intend to extend employment to you. Please note that the terms of your new employment, including pay and benefits, may be different from the current terms of your employment with THQ.

If you are an employee of an entity that is not included in the sale, we regret that your position will end. A small number of our headquarters staff will continue to be employed by THQ beyond January 25 to assist with the transition. THQ has sufficient resources to pay these employees for work going forward, and we will be contacting these employees immediately to ensure their continued employment during this transition period. We are requesting the ability to offer certain severance pay to minimize disruption for employees of non-included entities as they determine the next steps in their careers.

We know you will have many questions about this news. We'll be meeting tomorrow when we return to talk through this announcement and to answer any questions you have. You will receive a benefits fact sheet and FAQs with answers to some questions that may be on your mind. Please review these materials closely.

A personal note

The work that you all have done as part of the THQ family is imaginative, creative, artistic and highly valued by our loyal gamers. We are proud of what we have accomplished despite today's outcome.

It has been our privilege to work alongside the entire THQ team. While the company will cease to exist, we are heartened that the majority of our studios and games will continue under new ownership. We were hoping that the entire company would remain intact, but we expect to hear good news from each of the separate entities that will be operating as part of new organizations.

For those THQ employees who are part of entities that are not included in the sale, we are confident that the talent you have displayed as part of THQ will be recognized as you take the next steps in your career.

Thank you all for your dedication and for sharing your talent with the THQ team. We wish you the best of luck and hope you will keep in touch.

Sincerely,

Brian Farrell
Chief Executive Officer

Jason Rubin
President
Click to expand...
 
Relic Entertainment
Makers of Company of Heroes
Winning bidder: Sega, $26.6 million.
Runner-up: Zenimax Media, $26.3 million.

THQ Montreal
Makers of 1666 and Underdog, titles under development.
Winning bidder: Ubisoft, $2.5 million. No runner-up.

Evolve
(title in development at Turtle Rock Studios)
Winning bidder: Take-Two Interactive, $10.894 million.
Runner-up: Turtle Rock Studios, $250,000.

Volition, Inc.
Maker of Saints Row
Winning bidder: Koch Media, $22,312,925.
Runner-up: Ubisoft, $5.4 million.

Homefront
Released 2011; due for a sequel.
Winning bidder: Crytek. $544,218.
No runner-up.

Metro
Series; due for the sequel Metro: Last Light.
Winning Bidder: Koch Media, $5,877,551
Runner-up: Ubisoft: $5.175 million.

South Park
License; South Park: The Stick of Truth is due for release March 5.
Winning bidder: Ubisoft, $3,265,306
No runner-up.

--

No bids for Vigil and the Darksiders IP apparently.
 
Crytek got the Homefront IP for only $500k? Considering that, despite its problems, the original sold 3 million copies, they'll make that back in almost no time at all. Unless the sequel they're developing completely bombs, of course.
 
[quote name='Cao Cao']Crytek got the Homefront IP for only $500k? Considering that, despite its problems, the original sold 3 million copies, they'll make that back in almost no time at all. Unless the sequel they're developing completely bombs, of course.[/QUOTE]

Homefront didn't do as well as it initially seemed when it was released. Crytek is the developer of Homefront 2 so it makes sense that they want it. They're doing the coding and now they own the thing outright. It seems like a hell of a deal for them.

[quote name='Ryuukishi']Relic Entertainment
Makers of Company of Heroes
Winning bidder: Sega, $26.6 million.
Runner-up: Zenimax Media, $26.3 million.

THQ Montreal
Makers of 1666 and Underdog, titles under development.
Winning bidder: Ubisoft, $2.5 million. No runner-up.

Evolve
(title in development at Turtle Rock Studios)
Winning bidder: Take-Two Interactive, $10.894 million.
Runner-up: Turtle Rock Studios, $250,000.

Volition, Inc.
Maker of Saints Row
Winning bidder: Koch Media, $22,312,925.
Runner-up: Ubisoft, $5.4 million.

Homefront
Released 2011; due for a sequel.
Winning bidder: Crytek. $544,218.
No runner-up.

Metro
Series; due for the sequel Metro: Last Light.
Winning Bidder: Koch Media, $5,877,551
Runner-up: Ubisoft: $5.175 million.

South Park
License; South Park: The Stick of Truth is due for release March 5.
Winning bidder: Ubisoft, $3,265,306
No runner-up.

--

No bids for Vigil and the Darksiders IP apparently.[/QUOTE]

Thanks! added it to the OP
 
Shareholders going in front of the court saying that the Volition sale should not go through due to low prices. :)

edit:
Nevermind, the judge denied the stay on the Volition sale.
 
[quote name='Blaster man']What sold went for about 70 million. Vigil and some IP's are left.[/QUOTE]
Deep Silver declined to purchase the Red Faction IP along with Volition I guess? Or is it considered a legacy IP since there's no RF game currently in development.
 
I feel more comfortable with Ubisoft handling South Park. Hopefully the South Park folks are also.

I can't wait to see who picks up the WWE Franchise.
 
The differences in some of those bids are crazy. I assume this was a blind bidding process. I mean 17 million between the 2 bids for Volition?

I would not have minded Metro going to Ubisoft instead. I would take the teams from Far Cry over Dead Island for my FPS genre.
 
:rofl: at Crytek buying Homefront for about 1/2 million dollars. Funny for 2 reasons, one because that opens the door for another game and two because that selling price was a fraction of just the advertising budget for the original game.
 
[quote name='RedvsBlue']:rofl: at Crytek buying Homefront for about 1/2 million dollars. Funny for 2 reasons, one because that opens the door for another game and two because that selling price was a fraction of just the advertising budget for the original game.[/QUOTE]
According to the auction results PDF posted above, THQ owed Crytek $1 million, and anyone who bought the title would've had to have assumed that debt, so the real cost was $1.5 million.
 
I just hope the new owners of Saint's Row don't try to turn it into something more serious and keep the coop. If they change either of those things then I'll skip it.
 
[quote name='sleepydumbdude']I just hope the new owners of Saint's Row don't try to turn it into something more serious and keep the coop. If they change either of those things then I'll skip it.[/QUOTE]
Saints Row 4 is already well into development. And Deep Silver is the publisher of Dead Island... The SR devs will actually classy up the joint a bit. :lol:
 
Amazed how little other companies put down for Saints Row and Volition. SR3 sold 2.3M copies. Supposedly the publisher makes $27 dollars off each new $60 game. Therefore THQ made around (2.3M x $27) = 62.1M. Obviously this could be completely off, but it should give a good estimation. I just think that a franchise/studio able to rack up that much money for a publisher should be worth a lot more.

1289873-gameanatomy_super.jpg

Source: From Online gaming service.
 
[quote name='Dark Rider']Amazed how little other companies put down for Saints Row and Volition. SR3 sold 2.3M copies. Supposedly the publisher makes $27 dollars off each new $60 game. Therefore THQ made around (2.3M x $27) = 62.1M. Obviously this could be completely off, but it should give a good estimation. I just think that a franchise/studio able to rack up that much money for a publisher should be worth a lot more.
[/QUOTE]
Another thing to consider though is that we are right at the end of a console generation. It's not like Volition has five more chances to crank out another SR3 and earn that $62M. Big change is coming soon and they may or may not be positioned to make that transition effectively.
 
[quote name='Dark Rider']Amazed how little other companies put down for Saints Row and Volition. SR3 sold 2.3M copies. Supposedly the publisher makes $27 dollars off each new $60 game. Therefore THQ made around (2.3M x $27) = 62.1M. Obviously this could be completely off, but it should give a good estimation. I just think that a franchise/studio able to rack up that much money for a publisher should be worth a lot more.

1289873-gameanatomy_super.jpg

Source: From Online gaming service.[/QUOTE]

Yeah but's gross not net. If it cost them $30M to make it, then they only made $32.1M.

I had to LOL what looks like a bunch of Ubisoft lowball bids.
 
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