Report: Warner Bros. Interactive Interested In Bidding On THQ's Assets

A bankruptcy judge yesterday did not approve the bidding procedures THQ proposed in selling off its assets, which THQ's creditors had complained was rigged to sell the whole thing to a private equity firm for $US60 million. Now comes a report that Warner Bros. Interactive Entertainment is an interested buyer.

The word comes from Distressed Debt Investing, a blog managed by an investor who evidently was in Friday's hearing on THQ's bankruptcy. On his Twitter feed, he said "Lawyers for Warner Brothers states they have team ready to complete due diligence if more time is allowed." Other buyers are interested in some of THQ's assets, and some also are interested in purchasing it whole, Distressed Debt Investing said.

THQ's creditors, and the government trustee assigned to the bankruptcy, had filed objections to bidding rules THQ had proposed when it is put up for sale, saying they stacked things in favour of Clearlake Capital Group getting control of everything for $US60 million. The sale presumably would leave THQ's management team in place and keep all of its assets together, just owned by Clearlake. THQ has characterised the provisional sale as Clearlake making an investment in the company's new start.

Had the rules been approved, Clearlake would have gotten control of THQ for $US60 million assuming another bidder had not come forward. While the judge in this case did not approve the procedures for sale, she rescheduled another hearing for Monday and asked the parties to continue working out their differences.

THQI Reconvening on Monday (more coming later) [Distressed Debt Investing via VG247.]


Comments

    Thank you corporate america for once again proving that it's the bottomline that counts.

    So THQ mamages to find a way to preserve itself as a full company and what do the investors do? Bitch that they didn't try breaking the company apart first for "profit" because we all know you get more bank for buck when you start a fire sale of your studios!

    Utterly disgusted....

      The current management ran the company into the ground: why would it be a good thing to let them she'd their debts and continue as normal?

      While the management might consider a below market value sale a good thing if it let's them keep control, it clearly isn't in the creditors best interest.

      And splitting the assets up isn't the end of the world. Does it really matter if the Volition studio and the South Park license end up in different hands, for instance?

      It's not the investors bitching, it's the creditors. And they have a right to argue for their best chance to recoup monies that are owed to them for services provided. They're the ones that have been ripped off. Why should they care about what's good for THQ and its management for the long-term.

    Joking right? They were trying to be shifty and got shut down, it's a good thing. They failed as a company so they deserve to die.

      I just hope their good dev's like Violation and relic arnt dragged down with them and keep the rights to make sequels to their good games like Saint's Row and Company Of Hero's etc.

        Volition and Relic are fully owned by THQ so if THQ goes, so do they, because they ARE THQ. Unless THQ sell them off independently (which I don't see happening), they will unfortunately go down with the ship if it sinks.

          The studios are assets of THQ. If splitting off the studios separately (together with the associated franchises they work on) is the best way to recoup the creditors' money, then that might be what happens.

          While the management might want to only consider whole-company sales, it is the bankruptcy trustee who is in control. And splitting off studios isn't necessarily a bad thing: WB only bought part of Midway, but the most recent Mortal Kombat game turned out okay.

    It's Volition, isn't it, but I must say Violation is a cracking name for a games developer.

      Making kids games, right?

        Yeah, ur right. It is a bit rapey. Still all in the name of entertainment.

    At the price their worth... wouldn't be nearly as cheap to buy the lot?

    As long as I get Metro: Last Light on time…

    Could be a good thing. Warner Bros. Interactive have a good track run with some developers, and I can definitely see them interested in some of their franchises and studios. But I really hope this doesn't affect some of their great games already being made. I for one am very interested in Company of Heroes 2, and I'm quite interested in South Park, Metro: Last Light and whatever Volition has coming next.

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