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Home » WWE News » WWE Video Game Publisher Announces It Has Filed For Bankruptcy – Press Release

THQ, WWE’s video game publisher, has filed for Chapter 11 bankruptcy protection and will seek a buyer to help it recover from years of business and creative missteps.

The Agoura Hills, California company is working with private investment firm Clearlake Capital Group, which has agreed to enter a $60-million “stalking horse” bid for THQ’s U.S. assets. Any potential suitor for THQ would have to offer more than that.

Details of the move were made available in the following press release.

THQ Inc. Secures Asset Purchase Agreement with Affiliates of Clearlake Capital Group, L.P.

Clearlake Offers to Acquire THQ’s Assets Via Section 363 under Chapter 11; Company Obtains Commitment for Interim Financing to Fund Operations Without Interruption

AGOURA HILLS, Calif.–(BUSINESS WIRE)–Dec. 19, 2012– THQ Inc. (NASDAQ: THQI), a leading worldwide developer and publisher of interactive entertainment software, today announced that it entered into an Asset Purchase Agreement with a “stalking horse bidder,” affiliates of Clearlake Capital Group, L.P., to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development. 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.

To facilitate the sale, THQ and its domestic business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Delaware. The company’s foreign operations, including Canada, are not included in the filings. The company has obtained commitments from Wells Fargo and Clearlake for debtor-in possession (DIP) financing of approximately $37.5 million, subject to Court approval.

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.

“The sale and filing are necessary next steps to complete THQ’s transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ’s deep bench of talent,” said Brian Farrell, Chairman and CEO of THQ. “We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible.”

According to Jason Rubin, who joined THQ as President last May, “We have incredible, creative talent here at THQ. We look forward to partnering with experienced investors for a new start as we will continue to use our intellectual property assets to develop high-quality core games, create new franchise titles, and drive demand through both traditional and digital channels.”

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.

Consumers and retailers should see no changes while the company completes a sale. The new financing will support business operations throughout the period. THQ does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary Court approval.

As is the case after a Chapter 11 filing, THQ expects to receive notice from NASDAQ informing the company that its shares will be delisted from the exchange within nine calendar days of notification.

THQ is being advised by Centerview Partners LLC and FTI Consulting as its financial advisors and Gibson, Dunn & Crutcher as legal counsel. Clearlake is being advised by DLA Piper as legal counsel.

For additional information about THQ, please visit www.thq.com. For information regarding the Chapter 11 case, please visit www.kccllc.net/thq.

  • Mabry

    Acclaim should do the wwe games again… oh wait, those guys are dead too… Ok, LJN than…. oh crap, those are also dead. What´s wrong with my childhood video games companies???.

    But serioulsy, if they dissapear, i sure hope its not EA that takes charge, smeone mentioned 2K, i think that would be great, those guys make awesome sport games….

  • HR

    I can actually see Activision picking the IP up since EA acquired the UFC franchise. Even though their totally different, Activision will always compete with EA for this demographic.

  • Rob

    Good. Maybe we wont get anymore copy/paste wwe games anymore.

  • scooter

    Bizarrely good merchandise idea would be if travellers tales did a lego WWE game, could be fun and kids would go out in droves to buy it.

  • barry horowitz

    Zedd “ruining saints row.” aaaand that sentence has rendered you completely irrelevant.

  • Zedd

    That;s what they get for ruining Saints Row and releasing WWE13 completely broken.

  • Kris Binder

    whats the big deal? Trump files for bankruptcy every year

  • Johnny Wayne

    FFFFFFFFFFFFFFFFFFUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU…

  • kennedyniles

    Nooooooooo, THQ is great for WWE games

  • DEE1ANDONLY

    awww damn as good as WWE13 is i thought they would b fine off all the $ im sure they made from this game but if wwe has to go to another video game company i personally would like to see 2K or even better ROCKSTAR take them on now that would b HELLA interestin or thy can always go back to acclaim or watever its called now

  • http://facebook.com ceejay

    Long as WWE doesn’t go with Capcom/Namco. Although Street Fighter Vs WWE doesn’t sound that bad. lol

  • O well

    I got my attitude era game now so im happy wont be buying another wwe pg era game again lol

  • scooter

    WWE won’t be worrying they’ll be picked up in no time.

  • Lew

    I’m pretty sure this is not the first time they filed for bankruptcy

  • Robinson

    Really…. Really……….. Really?!

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