Financial threat for THQNovember 16 - 2pm 5
Things aren’t looking good for video game publisher THQ, and other companies might just be preparing to pounce.
The company is experiencing financial difficulties, as Forbes reports business-banking firm Wells Fargo declared an “event of default”, saying that THQ had drawn more cash on its credit facility than it could support.
A statement from the company was relatively ambiguous.
“We are currently in discussions with Wells Fargo regarding the asserted event of default and believe that we will reach an agreement with Wells Fargo with respect to such default; however, there can be no assurance that we will reach an agreement,” it reads.
Interestingly, Ubisoft chairman and chief executive Yves Guillemot told GamesIndustry that what THQ faces is part of the industry.
He also said that given THQ’s financial issues it might be a good time to swoop in and pick up some of the biggest brands associated with the name.
“What happened to [THQ] is something that happens regularly when we have transition,” he said.
“Some can make it, some decide to go in different direction. It happened with Atari and Midway and also Acclaim last generation.
“They have good things. We are always interested in good brands. For sure, it’s something we can consider, but I can’t tell you more.”
Those “good things” include a number of successful franchises, including Saints Row, Darksiders, WWE, Warhammer 40,000 and Destroy All Humans!
What are your thoughts – would a selling-off of THQ’s intellectual properties be a wise move? Let us know in the comments section.