THQ sells itself
THQ has sent out word that they’ve ‘secured’ an agreement with “affiliates of” Clearlake Capital Group which means they’re filed for Chapter 11 protection from bankruptcy, have sold off all their assets to the investment group while obtaining a commitment for funds to keep their operations running.
THQ hopes that this sale of studios and games that are currently under development will give them the possibility to get rid of legacy obligations and rise out of the ashes with financial backing from the new owner. Those worrying about THQ’s current release slate that’s under development should rest assured that operations remain as they were, meaning there are no plans to cancel any games in development at this stage.
Here’s how they put it themselves:
The sale will allow THQ to shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology.
THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ’s first-day motions. All of the company’s studios remain open, and all development teams continue. The company remains confident in its existing pipeline of games. THQ maintains relationships with some of the top independent development studios around the globe. As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts
Clearlake has agreed to serve as the “stalking horse bidder” for a Section 363 sale process, which allows other interested parties to come forward with competing bids. Aggregate consideration offered by Clearlake for the purchase totals approximately $60 million, including a new $10 million note for the benefit of the company’s creditors. The company is asking the Court for a schedule to complete the sale process in about 30 days
If anyone has some money to spare, they can go ahead and file a competing bid.