i know and that's the way it goes mate... They knew this from the start and since they knew they were on the way unders
decided to forget about this little small thing
It looks like things aren't going quite so smoothly in bankruptcy court as THQ's scumbag management had hoped for.
Live tweets from the proceedings:
Hunter @DDInvesting Paul Silverstein of Andrews Kurth states that the sales process in THQ is overly aggressive. Witnesses for both parties about to start
THQI Hearing: Original projections from just 2 weeks ago of -$10M of cash flow. Actual net cash flows actually positive of $3.4M.
THQ adjourning until 1:00PM. Testimony from Sam Greene of Centerview, the company's banker, up next.
Centerview: 5 strategic buyers in active due diligence in THQ.
TQHI court heating up. Centerview's banker on record of saying buyers are interested in individual titles. Clearlake has said not allowed.
Recess in the THQ case. Will update shortly.
Bondholders have called their own investment banker as a witness in the THQ bankruptcy case
Bondholder banker notes that the pre-petition THQ sales process didn't give enough information for strategics to value individual titles.
THQI: Question: Aware of any strategics in attendance today, in the court or on the phone? Yes.
they again have so many contracts that costed so much money and they have to pay back and offshore money and stuff we do not know about...
So skeletons in the closets will be revealed soon
So don't worry about the developers. The studios (or at least MOST of them) will be around even if the company is dissolved. If the company is dissolved then they'll get more money than this pathetic 30 million dollars being offered up as well. That's why the bond holders are so interested in it. Also if you look at THQ's stock today, massive spike in price as speculators piled in on news that this court case may not turn out in management's favor. They're obviously hoping for a payout.
THQ Inc. (THQIQ)
0.29 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 0.12(70.59%) 3:59PM EST
Hunter @DDInvesting THQI: Judge doesn't approve bid procedures. Not approving DIP. Recommencing Monday.
DIP = debtor in possession = wells fargo's loan to keep the company going
bid procedures is obvious.
In other words, the filings as submitted are bogus and the judge agrees with the bond holders. Good.
thats great news for bondholders
i again see more skeletons in the closet being revealed over this mess, the WWE is after blood and will not stop until they get their $45million back, plus all musice that was given to all their games and ad's to promote the games
They like others have never learnt past leaasons
For the WWE, the 45 million is only partly "owed" per say. Most of it is future amounts they would be owed during the term of the contract. Most likely the bankruptcy court will terminate the contract and the most the WWE could hope for is the amount due from the contract up to the time the filing happened. They can farm the contract out to EA or whoever after the contracted is terminated.
Forgot to mention this, in THQ's rush to complete bankruptcy before any other company can complete due diligence (they even filed around the holidays to reduce the number of working days in the 30 day bankruptcy), they're trying to prevent others from buying.
Hunter @DDInvesting THQ: Lawyers for Warner Brothers states they have team ready to complete due diligence if more time is allowed.
Warner bought Midway during their Bankruptcy don't forget@!
Wow interesting stuff. I feel bad for anyone effected but love watching shit hit the fan!
Saw this posted elsewhere. Someone saying that this is basically THQ...
we have to wait and see what else happens over the next lot off months
With what's happening now, THQ are going to find it hard to get a buyer for the company
Particularly because of this which is essentially what I've been saying for over a month now:
The creditors allege THQ and the private equity firm Clearlake Capital Group have rigged the sale, ostensibly an open bidding process, to ensure that Clearlake gets all of the company's assets. They've got a problem with THQ's existing management team staying in control. And they say the whole process has been sped up—and deliberately initiated the week before Christmas—in order to guarantee Clearlake wins out.
i feel like this is de ja vu all over
that was one hell off a collapse
and THQ are going down the same type of road and getting hit be every car that wants a bit on the way past..
THQ vs shareholders vs bondholders vs companies they have contracts with aka WWE vs the market
Man i can not wait until this is all out in he open and we get the full story hopefully
According to Bloomberg News, bankruptcy of THQ, the videogame licensee of WWE, will not be quickly sold to Clearlake Capitol Group LLC as expected.
The judge overseeing the case would not grant the sale, noting that ten potential buyers have contacted the court about their interest if there was time to peruse the books. One of those parties interested is Warner Bros. Entertainment. Also, there are some shareholders that believe that there is more money to be made by selling pieces of the company's licenses and businesses off, instead of a straight sale.
WWE is listed in being owed $45 million according to documents and have already stated they "anticipate" the company will be actively participating in the proceedings. Another hearing on the matter is set for this Monday.
So the WWE is being screwed over and lost out on a new contract deal for future WWE games and it seems Warner Bro's want's to take up the contract, please do not give it to them
I think the WWE should hold off until say 2014/2015 until this mess is sorted and all out in the open... The real Issue the WWE has is the $45 million they have lost or might get some off it back from THQ
More on this as it heppens
No deal yet for THQI. Clearlake has agreed to allow individual title bids, lower break fee, and extending timing to January 15th for bids.
But various parties haven't come to an agreement so nothing in stone yet.
Hunter @DDInvesting 10m
THQI: EA, a potential buyer of certain titles has completed site visits.
View details ·
Hunter @DDInvesting 3m
THQI: Judge Walrath says that timing proposed by Clearlake is still not enough. Hearing this afternoon for use of cash collateral.
View details ·
dude i had to give you +rep for the info you have dropped in this thread, you have been awsome
with all that has happened so far... We can assume that THQ and their lawyers are shitty themselves over this and the bond holders and stock holders are rubbing their hands over what they will get out off this
Plus those that bought or acquired some off the titles are excited to bring a bit off life to them
so it's all going on and it makes for interesting reading
THQ individual franchises up for grabs, more show up to bid
by Alexander Sliwinski http://www.blogsmithmedia.com/www.jo...writer_rss.gif on Jan 7th 2013 3:30PM
intimate dinner for two that executives of the bankrupt publisher were hoping for, is turning into a Vegas buffet. Over the weekend, U.S. bankruptcy Judge Mary F. Walrath put the kibosh on THQ's eyebrow-raising quick sale to the private equity firm Clearlake Capital Group, allowing more time for other interested parties to get involved.
The Twitter feed for Distressed Debt Investing has been doing courtroom reporting, noting that the judge has set an auction date of January 22 where THQ assets could be sold individually. It's also been reported that Electronic Arts is now among the bidders. Warner Bros. has also been acknowledged as sniffing around, along with several others.
EA already got a good deal out of THQ in the middle of last year, leveraging THQ's precarious financial situation and taking the UFC license by offering up an "undisclosed cash payment." Warner Bros. has also shown talent in the bargain-basement bankruptcy shopping experience, grabbing Mortal Kombat during Midway's collapse.
Let's not kid ourselves, the fresh shrimp flown in fresh this morning at this THQ buffet is the Saints Row franchise. The latest iteration has shipped 5 million units and the franchise has sold 11 million units. Both EA and WB's portfolios are missing an established sandbox crime game – the bonus being if they get a new Saints Row delivered this year on a platter.
Hunter @DDInvesting Parties have come to agreement: THQI auction now on Jan 22nd. The auction will allow for piecemeal ("title by title") sales of THQ assets
BTW - seems a lot of games journalists at places like Joystiq have picked up on this guy (that invests in distressed debt) that's doing the live twetting and reporting on it. Of course not everyone can send a reporter to the court room in DE. I wonder how much of the debt the guy owns? If you look back a couple pages, I mentioned that the debt was selling at 9% of face value at the beginning of December. So he could have bought say, $1,000,000 in THQ bonds for $90,000. If they pay out more than 9% then he'd make a lot of money.
Thought I would put this commentary in a different post so it wouldn't get confused with what I wrote above as this is basically me writing a little more of an opinion.
I have a feeling that these guys didn't know what they were getting themselves into. Sure Jason Rubin has experience in the game industry. The problem here is that they were trying to pull a fast one on a bunch of people that are technologically savvy. This might have worked at a lot of other companies but to try this kind of bullshit on a video game company? They apparently didn't realize that a lot of the stockholders were gamers that they pissed off. There's a forum full of pissed off gamer stockholders and I have absolutely no doubt that the bond holders read that message board and have used some of that information in their filings with the court. I also have no doubt that THQ management is reading the messages.
Look at this guy for example:
I guess what I'm saying is that it's a huge mistake on their part to try to pull this kind of (IMO) scam bankruptcy in any kind of technology sector. Folks that own the stock are invested in the product as much as the company and are used to communicating and organizing online. I soooo want to see a picture of Brian Farrell (CEO) carrying his boxes out of THQ headquarters.
in a way the industry has a hand in this some way, and THQ got screwed in a way
Yes they screwed up and lost Millions upon millions in every way possible. But the industry should had for warned them that they were not the first to this and will not be the last in the near future... With all this coming out
The industry needs to take a long long hard look at it's self and rethink certain parts of it and to prevent this from happening to future companies, because any new small up and coming game creators and companies that want to make it in the industry. Will get afraid to get into it and go some were else to make there future millions...
The gaming industry needs something what i do not know yet, they are regulated heavy and rules are in place to try and fill in the loop holes and to prevent fraud and i see fraud in this THQ situation like any fraud in any screwed company...
Yes THQ as brought this unto themselves in a massive way, but the industry has learnt from this and they need to reshape it and protect companies from going under or we will not have an industry left
And we can not bank on Sony and Microsoft staying in, because they have stuff to fall back on. Were is Nintendo would be the only gaming company left and yes we all would love are favorite company left to run the industry are way
But it would be so dull with out competition... So this year and beyond, i hope the industry reshapes and learns from this before it's to late and we lose are only freedom into the digital world
Did you know that almost every single game THQ made required them to sell 2 million copies just to break even? Remember back in the days when everyone thought that 1 million sales was a hit? Well for THQ 1 million causes them to lose massive amounts of money. That's a big problem. Then there's the market disruption caused by smartphones and tablets. The floor fell out for licensed kids products and the low to mid tier titles. Those titles used to be successful but no one wants to spend $40-$60 for a game that's not super high quality when they can spent 1-5 bucks and get a perfectly fine game for their phone or tablet (for themselves or kids). The AAA experiences can't be done on mobile devices and those games tend to be successful still.
To sum it up, THQ's CEO wasn't flexible enough to change with the time. THQ was essentially KNOWN as a shovelware (kids games) and mid tier developer. The bottom fell out in those markets. ThQ had nothing but Saint's Row to keep it afloat and you can't fund 4 studios on the revenue of one game. Then came the scam scum bag moves that expedited the companies demise (in hopes that Jason Rubin and his pals could run away with it). That seems to have failed and now the company is going to be dissolved.
Found this twitter post while searching THQ on it that basically sums up the scamming they tried.
Nekware @nekware @StockCookies @jason_rubin I'll fill in for Jason: "tried to escape w the money, and wouldve gotten away if it werent for u meddling judges"
yes, just like rockstar had to sell over 10 million to come close to break even
So i heard THQ started development on WWE '14 and they have the funds set aside to finish it.
At least we'll be getting our wrestling fix this year. :D