THQ Auction Aftermath: Latest updates

For those who have been following the auction, here’s some details on what went down. The liquidation of assets and IP’s were inevitable, and to many fans of their titles, a huge shame. I’ve been playing their games since the early days of THQ (Toy Head Quarters) and it’s sad to see them fall. Regardless, you’ll want to know what’s happening to their development teams, so read on.

Our earlier post had very shallow information on the bids, however we seemed to have gotten the SEGA bit right. Relic would be the most valuable asset for THQ right about now, having the most success aside from Volition’s Saints Row series.

Studios/Developers

SEGA bought Company of Heroes, Dawn of War & Space Marine developer Relic Entertainment for $26.6 million. Zenimax (Bethesda) bid $26.3 million.
Koch Media bought Saints Row developer Volition for $23 million. Ubisoft bid $5.4 million.
Ubisoft bought the newly founded studio THQ Montreal for $2.5 million. No other bids were placed.
As expected, Darksiders developer Vigil did not find a buyer at this time.

Properties

Crysis developer Crytek purchased Homefront for $500,000. No other bids.
Koch Media purchased Metro property for $5.8 million. Ubisoft bid $5.175 million.
Ubisoft bought South Park rights for $3.2 million. No other bids.
Publisher Take 2 purchased new Evolve property for $11 million. Developer Turtle Rock Studios bid $250,000.

While we expected Vigil not to be purchased, it was mentioned in Jason Rubin’s email to employees that Vigil was not included in this auction and sale. Some assets still remain in THQ, however, their future is still an uncertainty at this point. Below is the email as reported by Kotaku.

THQ Official Letter by Jason Rubin
To All THQ Employees:

We now have the answers we’ve been seeking through our financial restructuring and
Chapter 11 case. While much will be written, here are the facts of the bids and auction
that occurred:

Yesterday morning, we received a competing bid for the operating business,
along with Clearlake’s offer, and numerous offers for separate assets.
During an auction process that lasted over 22 hours, the final conclusion was
that the separate-asset bids would net more than a single buyer for the majority
of the company.

Shortly, we will, present the results to the U.S. Bankruptcy Court, which must
concur with our assessment.

The proposed sales of multiple assets is as follows :
- Sega agreed to purchase Relic
- Koch Media agreed to purchase Volition and Metro
- Crytek agreed to purchase Homefront
- Take 2 agreed purchase Evolve and
- Ubisoft agreed to purchase Montreal and South Park

We expect these sales to close this week.

Some assets, including our publishing businesses and Vigil, along with some other
intellectual properties are not included in the sale agreements. They will remain part of
the Chapter 11 case. We will make every effort to find appropriate buyers, if possible.

What this means for employees

We expect that most employees of the entities included in the sale will be offered
employment by the new owners. However, we cannot say what these owners may
intend, and there will likely be some positions that will not be needed under the
new ownership. You should receive notice this week or early next week if the new
owners intend to extend employment to you. Please note that the terms of your new
employment, including pay and benefits, may be different from the current terms of
your employment with THQ.

If you are an employee of an entity that is not included in the sale, we regret that
your position will end. A small number of our headquarters staff will continue to be
employed by THQ beyond January 25 to assist with the transition. THQ has sufficient
resources to pay these employees for work going forward, and we will be contacting
these employees immediately to ensure their continued employment during this
transition period. We are requesting the ability to offer certain severance pay to
minimize disruption for employees of non-included entities as they determine the next
steps in their careers.

We know you will have many questions about this news. We’ll be meeting tomorrow
when we return to talk through this announcement and to answer any questions you
have. You will receive a benefits fact sheet and FAQs with answers to some questions
that may be on your mind. Please review these materials closely.

A personal note

The work that you all have done as part of the THQ family is imaginative, creative,
artistic and highly valued by our loyal gamers. We are proud of what we have
accomplished despite today’s outcome.

It has been our privilege to work alongside the entire THQ team. While the company
will cease to exist, we are heartened that the majority of our studios and games will
continue under new ownership. We were hoping that the entire company would remain
intact, but we expect to hear good news from each of the separate entities that will be
operating as part of new organizations.

For those THQ employees who are part of entities that are not included in the sale, we
are confident that the talent you have displayed as part of THQ will be recognized as you
take the next steps in your career.

Thank you all for your dedication and for sharing your talent with the THQ team. We
wish you the best of luck and hope you will keep in touch.

Sincerely,

Brian Farrell
Chief Executive Officer

Jason Rubin
President

The titles currently under development such as Company of Heroes 2, and Metro: Last Light were still being promoted as of last week, however, it is unknown if they will be shelved once the transition is complete. As a fan of these 2 titles, my only hope that we have not seen the last of what remains of THQ and their great games.

With their previous distribution partnerships with SEGA, I was pretty certain one of their properties would end up in their hands. Needless to say, with SEGA’s experience in strategy games mainly with the Total War series, perhaps there is much more to anticipate from Relic Entertainment and their titles.

Here’s to THQ for providing us awesome entertainment since 1989 – a total of 24 years.

Source: http://venturebeat.com/2013/01/23/thq-auction/

Source: kotaku.com