Game developer and publisher THQ filed for Chapter 11 bankruptcy and has entered into an asset purchase agreement with Clearlake Capital Group, a private equity firm. Clearlake will acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development, and THQ’s stock on the NASDAQ exchange has been halted, with the company expecting to be delisted within nine calendar days.
“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 THQ CEO Brian Farrell. THQ has developed games such as Saints Row and its sequels, Red Faction, Homefront and the WWE series of video games.
THQ (the abbreviation for Toy Head Quarters) was founded by former LJN co-founder Jack Friedman in April 1990, and acquired numerous game developers in the 2000s. It also had licensing relationships with Disney/Pixar and Nickelodeon, developing and publishing games based on popular Disney and Nickelodeon shows and movies.
Although THQ has chosen Clearlake Capital Group to purchase the company’s assets, it has positioned itself as a stalking horse bidder, which means although the company has chosen it to buy out its assets, it could also have other interested buyers.