Clearlake Capital Group wades in with a bucketload of cash.
By Tim Colwill on December 20, 2012 at 12:20 pm
It looks like the rip-roaring success of the Humble THQ Bundle wasn’t nearly enough: THQ have today filed for Chapter 11 bankruptcy and will be selling to a new financial partner. The move will not affect the launch of any games currently in development, such as Metro: Last Light, South Park: The Stick of Truth, Company of Heroes 2 or Homefront 2.
“Today THQ announced that it has secured an investor, a private equity firm named Clearlake Capital Group,” writes Jason Rubin, “who is interested in purchasing most of what you think makes up THQ: the teams that make the games (Relic, THQ Montreal, Vigil and Volition), THQ’s Intellectual Property (titles, source code, etc.), THQ’s contracts (like the ones with Crytek, South Park Digital Studios, 4A games, Obsidian, and Turtle Rock) and the support staff that are required to help the teams succeed.”
“In fact, Clearlake is even providing the company the money it needs to keep working on the products as the process plays itself out. And importantly, when the purchase is complete, Clearlake has committed to invest additional ample capital to let us finish the games we are making and continue making games going forward. In short, they are investing in a new start for our company.”
“The sale needs to be completed through a Chapter 11 proceeding of the Bankruptcy code, which we filed today. Given the intense speculation that we have experienced in recent weeks and months, this news probably isn’t that surprising.”
So why are THQ doing this right before Christmas? “Admittedly, the timing is unfortunate. But as we announced a few weeks ago, we have a January 15 deadline approaching for our bank funding. So if you work backwards to allow the necessary time to complete a sale, you end up at this week. Since all of THQ’s worldwide employees are off for a week and a half of paid vacation starting Friday for the holidays and will return to work on January 2nd, it hardly matters anyway.”