THQ's assets are going up for bid; is this the end?

In late December, THQ announced it was entering into Chapter 11 bankruptcy, while also announcing that affiliates of Clearlake Capital Group had become what's known as  a “stalking horse bidder" for THQ, with the purchase price of $60 million. The deal allowed other companies to bid on THQ if they wanted. Now there's word that Clearlake's plan to sell all of THQ's assets to one company won't happen, which may spell the doom of THQ as we know it.

Distress Debt Investing reports that Clearlake Capital will now be taking bids from companies who can choose to purchase individual THQ assets, such as games, game development studios and more. If this happens, it's likely that THQ will be divided up into several pieces. That means THQ as a game publisher is almost certainly dead.

Bids for the auction will be due on January 22nd, and the auction itself will be held later that day. Publishers such as Warner Bros. Interactive and Ubisoft are said to be interested in acquiring parts of THQ.

Before the bankruptcy announcement, THQ had a number of games set for release in 2013, including Company of Heroes 2, Metro: Last Light, Homefront 2, an unnamed game from developer Turtle Rock Studios, a new Saints Row game, and South Park: The Stick of Truth. Even if these games are acquired by another publisher, it's possible they may get delayed.

Source: Distress Debt Investing | Image via THQ

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It is my understanding that Clearlake Capital was trying to buy THQs assets in total to avoid them being split up not trying to sell them. They don't own them to sell. Furthermore they aren't taking bids, they are a bidder. THQ right now is owned by THQ but they are in bankrupt. Their assets are being sold and Clearlake Capital is has offered $60 million for all of them. Other companies can bid for portions of THQ and if the total of those bids exceeds the $60 million Clearlake Capital has offered for everything then they'll be split up and sold to the higher bidders. If the sum of the partial bids is less then $60 million Clearlake has offered then Clearlake will get all the assets. Again though Clearlake does not currently own THQs assets so they are not planning to sell them or taking bids as this post indicates. They themselves have placed a bid to buy them, just like Warner Bros. etc. only Clearlake is trying to buy everything instead of chopping the company up. This is what THQ management wanted but the judge disagreed as bankruptcy is about getting as much money as possible to pay off outstanding debts NOT keeping a management team that led the company to bankruptcy together.

I want to buy the Red Faction series from them, so we could all forget about released after RF1 (MAYBE RF2) and make it good.

SierraSonic said,
I want to buy the Red Faction series from them, so we could all forget about released after RF1 (MAYBE RF2) and make it good.

I like the way you think. I'll team up with you. RF2 was actually decent if you disregard the fact that they didn't include an MP with it, not even an netcode lol. What were they thinking...

Even worse, what were they thinking making the game 3rd person.

I love the Darksiders franchise myself but it died back in October when its heart and soul, Joe Madureira, left Vigil. If there is a Darksiders III it will just be different people making a game to cash in on the name so this asset sale is just to determine who that is... I don't really care. I'm more concerned for Dawn of War III... loved that series as well and I believe it's development was supposed to start after Company of Heroes 2 (Dawn of War II used the Company of Heroes game engine).