Lol?
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THQ's stock drops 50% after earnings implosion, [Tanks 22%+ again, worth $7.95M]
- Thread starter Nirolak
- Start date
Lol?
Then they're going into de-listing territory again.
I still maintain that there was a deliberate strategy by management (as evidenced by the cancellation of the analyst Q&A after the earnings report and the refusal to give further earnings guidance) to drive the stock to the floor in order for the private equity firm (one of whose partners is a good buddy of Rubin's) to buy out the equity holders for peanuts plus the $100 million on long-term debt.
Thy would then hold on to it to squeeze as much as they can from CoH 2, Metro, and South Park and then either sell it piecemeal or shutter it.
metalslimer
Member
So just checking back in what are the chances South Park releases and is published by THQ?
Unfortunately, it seems highly possible to me that Relic will end up being bought by EA, and that'll be the end of that.
Volition...I don't know...would Rockstar (i.e. Take Two) try to grab them, or is that too redundant?
I'd rather Take Two get all of the IPs, lesser of various evils, but who knows.
Volition...I don't know...would Rockstar (i.e. Take Two) try to grab them, or is that too redundant?
I'd rather Take Two get all of the IPs, lesser of various evils, but who knows.
quickwhips
Member
Microsoft or Sony should buy them and keep releasing saints row and darksiders as exclusives. I think they would be a best fit with microsoft honestly but im biased. Also southpark RPG.
Everything is going down today due to Romney losing, seriously, EVERYTHING
Going to be interesting to see where it finds a bottom when the market settles; oh and it's already in delisting territory, since they need their market cap to reach 15 million; they have 30 days to raise the cap (but they can ask for extensions too).
N
NinjaFridge
Unconfirmed Member
Saints Row needs to be available to everybody man, games got too serious lately and SR was a much needed break from that.
TheNatural
My Member!
Volition and Rockstar seem like a perfect match. There are different Rockstar Studios, so I don't see why adding another with it's own open world universe (dunno if they would buy the Saints Row name), would be a bad thing. Red Dead, Grand Theft Auto, LA Noire, and Saints Row are all pretty different things but in the same sort of universe.
maniac-kun
Member
This looks pretty bad 
its at 1.30 now.
its at 1.30 now.TheNatural
My Member!
This looks pretty bad
They're going to go insolvent very soon unless some of that company worth is in cash reserve. Dunno what their balance sheet looks like though.
Champaign, actually. It's about 2.5 hours south of Chicago. It changes the demographic of people who may want to work there since it's not in a major city.
I really hope Volition comes out of this on top and all my former co-workers land on their feet if anything hits the fan.
Glass Rebel
Member
Why would EA be interested in a company primarily known for their strategy games?
Why was EA interested in Westwood Studios?
Glass Rebel
Member
Because strategy games were fairly successful back then and to get the C&C franchise, I assume. It's not really comparable.
Because Company of Heroes and DoW are fairly successful and to get those IPs. How it is not comparable.
Anyways, I really do hope your doubts are well-founded. We don't need one more corpse added to the studios-EA-killed.gif.
Wouldn't be the worst plan in the world.
Glass Rebel
Member
1. CoH is not Relic's franchise but THQ's, they'd have to get that one as well.
2. DoW is not THQ's franchise but a license given out by Games Workshop. Would have to be negotiated again since GW probably has a bailout clause.
3. The way EA has been going for the last few years they're not into investing in "mid-tier" games (which Relic's games are, going by budget) but AAA(A) stuff or F2P/social.
I don't know, it could happen, I guess, but it doesn't seem likely. From all the big publishers I expect either 2K or Square-Enix to gobble up Relic, SEGA if they had any cash.
gamergirly
Member
Nintendo needs to go ahead and buy them out. Will round out a nice 2nd party
TheNatural
My Member!
University of Illinois is there right? Doesn't seem too secluded.
They already are insolvent - they just haven't filed the paperwork yet.
I guess in my mind, I put CoH right there with anything Blizzard has put out there, in terms of quality, but I see what you're saying -- the mindshare and prominence isn't quite up there.
I'd be ok with 2K taking them over, and it wouldn't seem out of place considering they already have a decent stable of stategy IPs like Civ and XCOM. SEGA seems to be doing ok with the TW franchise, not sure how they're doing financially overall.
excaliburps
Press - MP1st.com
I gather vultures like EA, Take-Two, etc. are just waiting for it to flatline before swooping in and buying IPs, assets at the cheap.
Although, not really surprised. When Joe Mad said he's leaving Vigil, I took that as a bad sign that Darksiders 2 didn't sell all that well.
Still, though, never fun when people lose their jobs...
Although, not really surprised. When Joe Mad said he's leaving Vigil, I took that as a bad sign that Darksiders 2 didn't sell all that well.
Still, though, never fun when people lose their jobs...
Glass Rebel
Member
Yes, let's lock down beloved IPs and developers to as few platforms as possible.
ghst
thanks for the tears
(Today, 06:22 PM)
TheNatural
My Member!
Well they must have enough money to keep giving their employees a check though. It's a matter of time, but I wonder exactly when that time is and what's even keeping them going currently. I would be surprised if nothing comes out about their assets being sold, or declaring bankruptcy within a month from now with the earning and stock value.
You can have money to cover day-to-day operations and still be technically insolvent as your liabilities would oustrip your assets.
Rocket Scientist
Member
What's the consensus, do they have actual IP's that are worth just buying the whole company for? (I know their games, but I don't the details on which IP's are theirs or licensed or whatever)
Yeah, but when college isn't in session, the population drops almost in half. Granted, it's a great town if you want to start a family (ridiculously low cost of living), or live in a college town, but it's a very different life compared to living in/near a major city like most other studios.
TheNatural
My Member!
I'm just wondering the point when they flat out cannot run day to day operations anymore and just have to say 'shut it down.'
I can't imagine much real work is getting done, considering people are probably busy polishing resumes. At least they will have had more warning than 38 Studios people.
Deadly Cyclone
Pride of Iowa State
bone_and_sinew
breaking down barriers in gratuitous nudity
I'll pitch in $5 so we can buy it.
If what I'm thinking is true, then he IS getting his shit together and rather smartly at that!
Aaaaand that's the plan right there in effect!
RPGCrazied
Member
Yeah. I guess its a safe bet THQ won't be around to much longer. I just hope a few IP's they have can be bought by someone else.
They won't be around as a publicly-traded entity, but they will exist for at least one fiscal year as a private entity owned by Crestview Partners LLC.
DXB-KNIGHT
Member
Darn 8 Million O.O
MrCunningham
Member
Oh wow, it just dropped to 1.23....
Is it even possible to recover from this?
Is it even possible to recover from this?
One of the things I'd like people to keep in mind that the price of stock really has absolutely no impact on the current operations of a company. The stock price could go to absolutely zero and a company could keep running as if nothing had happened. This is because stock price has no effect on a company's revenues.
Stock price only becomes an issue when a company wants to issue new shares from its treasury to raise capital. In THQ's case, they are certainly not going to issue any new shares as a means of obtaining funding so from a management perspective, the stock price is pretty irrelevant.
I mean, if you're a THQ stockholder it sucks, but let's face it - you should have bailed from this stock a long time ago.
Stock price only becomes an issue when a company wants to issue new shares from its treasury to raise capital. In THQ's case, they are certainly not going to issue any new shares as a means of obtaining funding so from a management perspective, the stock price is pretty irrelevant.
I mean, if you're a THQ stockholder it sucks, but let's face it - you should have bailed from this stock a long time ago.
CosmicQueso
Member
Theoretically, maybe. But that talent pool (which was already thinning in a big way) is going to start draining even more quickly now. No reason to stay with the sinking ship if you are holding worthless options. And that does impact operations. Then, if the equity guys come in to sell off the IPs and assets, well...
OrangeYouGlad
Banned
I'm waiting for the inevitable penny stock to buy in. Sound investment plan right here!
Down 29.25%, worth $7.27 million.
Well, it can effect your ability to get a line of credit or other investment due to what it says about your company, but yes, in terms of direct impact that's true.
Well, it can effect your ability to get a line of credit or other investment due to what it says about your company, but yes, in terms of direct impact that's true.