THQ is No More, Assets Have Been Sold Off

THQ's assets have been auctioned off. The buyers have been announced.

For the past year, THQ had been struggling to keep its doors from closing. A bad investment in the uDraw and the failure of its titles to compete with the likes of blockbusters from larger publishing companies, the publisher was unable to pull itself out of the red. Despite its executive's best efforts to keep the company afloat, first with a reverse stock-split option to prevent a delisting from NASDAQ, and then an attempt at a quick fire sale that was later denied by a judge, THQ is no more.

The publisher's assets have been auctioned off to various sellers, which were announced in a letter that THQ CEO Brian Farrell and THQ President Jason Rubin sent out to their former employees:

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 t:

§  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

Unfortunately, the letter doesn't specify whether or not buyers have picked up THQ's IPs (beyond the ones specified) with their respective developers. Hopefully, that's certainly the case. It would be a shame if franchises like Saint's Row and Company of Heroes were left behind.

For now, it also appears that Vigil Games, the developers behind Darksiders, has yet to be picked up buy a buyer.  

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