Videogame maker THQ gets court approval for sale of assets

Reuters News
Posted: Jan 24, 2013 2:12 PM
Videogame maker THQ gets court approval for sale of assets

(Reuters) - Videogame maker THQ Inc said it received court approval to sell its assets to various buyers for about $72 million and will split up following the sale.

The company will sell Relic Studios to Japanese video game software developer Sega Corp for $26.6 million while Koch Media GmbH will buy Volition Inc and video game "Metro: Last Light" for $22.3 million and $5.9 million, respectively.

Volition is the maker of THQ's best selling "Saints Row" series. The company's publishing businesses, Vigil Games and certain other intellectual properties were not part of the sale process.

"South Park: The Stick of Truth", a role-play video game based on the popular U.S. animated television series "South Park" is being sold to Ubisoft LLC for $3.3 million.

THQ received court approval earlier this month for a longer bankruptcy auction process that allowed other parties to bid for its assets, after it reached an agreement with a committee representing unsecured creditors.

The company appointed private investment firm Clearlake Capital Group as the "stalking horse" or lead bidder for the entire company and asked the court for an unusually quick auction.

The move was criticized by the company's unsecured creditors who said it gave an unfair advantage to Clearlake and was designed to specifically thwart other potential bidders.

"While we had hoped that the restructuring process would allow the company to remain intact, I am heartened that the majority of our studios and games will continue under new ownership," said THQ Chief Executive Brian Farrell.

The case is In Re: THQ Inc, U.S. Bankruptcy Court, District of Delaware. No:12-13398.

(Reporting by Tanya Agrawal in Bangalore; Editing by Joyjeet Das)