THQ Closes Business

Brian Farrell, CEO of THQ, and Jason Rubin, President, announced that the game developer will be dissolved and its properties will be sold to 5 buyers. Although it still needs the approval of the court, according to the auction that was held yesterday, this is what happened to the properties of the company:

  • 1. Sega will buy Relic Entertainment – acquiring Company of Heroes 2 for $ 26 million (Company of Heroes and Warhammer 40,000: Dawn of War)
  • 2. Koch Media will buy the studio Volition (Saints Row) – making Saints Row 4 and Metro franchise for $ 28.1 million.
  • 3. Crytek will buy the Homefront franchise.
  • 4. Take 2 will buy the franchise Evolve, recently announced, for $ 11 million.
  • 5. Ubisoft will buy the THQ Montreal studio – getting 1666 and the South Park franchise for $ 5.7 million.

Curiously,  Ubisoft bought the studio that is doing the new game being developed by the father of Assassin’s Creed, who left the company a few years ago.

The announcement does not bode well for Vigil, the developers of Darksiders 1 and 2. No one has been decided to purchase Vigil, meaning the company will remain within the bankruptcy process and will close.

Returning to the subject of the dissolution, Farrell and Rubin issued an emotional letter in recognition of the work done by members of the insolvent distributor and expressed his hope that, now in new hands, employees can keep their jobs, but of course, there is no guarantee.

The letter in full is quoted below:
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 t:
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

 

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the author

Just an Enthusiastic Gamer looking for the ultimate ride, Born in Honduras. Freelance writer and aspiring video game journalist that Loves to write and play video games, watch movies, and read geek stuff. Follow me on Twitter: @Tornrhen_SPFO and on Facebook: TonyHalo.

  • NILH

    Interesting article, I didn’t knew the distributions of licences, I hope darksiders ends up in good hands.