Publisher THQ has filed for bankruptcy and found a company to act as a “stalking horse bidder” in a sale of its four development studios and all of its assets. Despite the negative connotations of bankruptcy and asset sales it seems this is all a good thing, all THQ’s games remain in development and there seems to be no sign of layoffs.
The deal’s complicated, and we’re still trying to understand the implications – and we’ve reached out to THQ to decipher it: but here’s the outline.
THQ has partnered with a private equity group called Clearlake Capital Group, L.P. to begin a “stalking horse bid”. This is when a company goes on sale with one buyer already stating an amount they will offer. In this case, Clearlake Capital Group have opened the bidding, which will last for 30 days, with an offer of $60 million. This method protects THQ from being bought for a ridiculously small amount.
To speed the whole process along, THQ began the sale period by filing for bankruptcy in the US. This bankruptcy filing frees THQ from a number of debt obligations, reducing their outgoings. THQ only filed in the US, so its Canadian, European, and Asian offices remain unaffected.
THQ are saying that none of their games’ development will be affected, nor will any staff lose their jobs.