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THQ's stock drops 50% after earnings implosion, [Tanks 22%+ again, worth $7.95M]
- Thread starter Nirolak
- Start date
dragonflys545
Member
They all went to Udraw and balloons.
TheNatural
My Member!
If they fall under $1 again they'll be delisted after a certain amount of time, correct?
THQ's mild success in the casual Nintendo space was undermined by its misguided attempt at expanding uDraw to the PS360.
Edit: Beaten.
Correct!
crazygambit
Member
I don't think you understand how stocks work. The stock price is dropping because they are insolvent, not the other way around. The stock price has no effect on the companies' cash reserves.
TheNatural
My Member!
I was speaking more to their earnings and what they have this quarter in general, not stock price = losing money directly. They can't issue more stock to raise funds, they can't get loans because the company is falling apart with the stock dropping, things like that effect cash reserves directly.
I don't know how WWE 13 is doing, but they essentially have to bank on huge numbers there, and in their back catalog this holiday, to bring in cash.
throwawayname
Member
Please save COH2 
TheNatural
My Member!
By the way, they're at 1.06 now. It looks like it's going to fall under the dollar mark very soon.
out0v0rder
Member
just do another split!
Angelus Errare
Banned
Nearing GAF buy out territory.
A split would push the price per share down even further. I think you mean a reverse-split!
Glass Rebel
Member
Can someone break it down for us non-economists what a drop below $1/share would mean for THQ? Delisting from NASDAQ and therefore making it incredibly hard to get the necessary cash?
bluedeviltron
Member
Obama killed THQ.
Kickstarter: Hostile overtake of THQI
They lose opportunities such as bonds (basically a loan) and second offerings (offering new shares for current stock value.. higher value means they get more money for the new shares offered).
They lose opportunities such as bonds (basically a loan) and second offerings (offering new shares for current stock value.. higher value means they get more money for the new shares offered).
Glass Rebel
Member
So they'd be pretty much fucked unless someone steps in and offers them cash through other channels? Wow. #121212
maquiladora
Member
So THQ is now worth less than double the amount Project Eternity got in funding on Kickstarter.
And I firmly believe that the cash will be coming from Crestview in the form of a private equity buyout.
Glass Rebel
Member
A4 is independent afaik, THQ is only publishing Metro. At worst, they'd end up without a publisher for their game.
AranhaHunter
Banned
If it reaches $.99 cents I will buy one share just cuz.
The Horror the horror
Banned
I would like to see the WWE award Take Two, or specifically 2K Sports, their license to be developed by Visual Concepts. Would company dissolvement effectively nullify the WWE's contractual obligation with THQ as it relates to their licensing agreement, or would the WWE be obligated to honor their original license agreement with the new proprietor of the pertinent THQ assets?
gamergirly
Member
Exactly what happened to the first company I worked for. Massive lay off then they went bankrupt lol
I remember checking the stock price every morning before they finally went under
ChosenPredator
Banned
me too
I think their high amount of debt is going to deter a full or major purchase. People will be interested in individual IPs and that will be it. I don't think anyone wants to pay the $100 million THQ owes.
infinityBCRT
Member
They should just sell off their studios/IP and call it a day. Otherwise good people will lose their jobs.
Lagspike_exe
Member
IP fire sale incoming. Creditors are going to want some of that money back.
Shalashaska161
Member
Yup chances potential buyers are just waiting for the company to truly die and then go in and scoop up the scraps.
I am convinced that this is the strategic intent of management.
If I was a THQ or any of their studios employee I would be very actively trying to find another job at another company right this instant. Ghst post is depressingly accurate. Even if Company of Heroes 2 is released this "delay for additional polish" will do nothing as the team will be demotivated and perhaps even depleted in talent. The post release support I would think will include only DLC that is being worked out now or nothing at all. Depressing.
infinityBCRT
Member
Any of the big 3 would be smart to pick up THQ because it would round out their first party offering. Especially MS.
Delusibeta
Banned
Obsidian must be grateful that even if THQ collapses and Stick of Truth is canned, they have a backup plan and cash in the bank to fund said plan.
metalslimer
Member
MS doesn't need a bigger western presence though. Nintendo would probably benefit the most, but half of the things THQ makes like Relics games and WWE wouldn't be valuable to them. They would only want Saints Row and Darksiders (mainly Saints Row)
You're the only person in the world that wants 99 Luftballoons 2: BALLOONS IN THE OCEAN boogaloo...
Shao Kahn Brewing a Stew
Banned
C'mon, Sony. Do it!
Zynga to purchase THQ.
If Stick of Truth is canned would most likely mean 75%+ of Obsidian's staff being let go, if not the entire company going down. Luckily the rights holders really want the game made and should have no trouble finding a new publisher for the game even if THQ went down.
A game in pre production being canned already led to them cutting 30+ people because they couldn't line up a new project in time, and they are likely counting on the bonuses from Stick of Truth to get them through until they get another AAA project into full production, on top of the fact funding from THQ is currently paying most of the bills at the moment.