THQ has filed for bankruptcy protection, and has struck an agreement with private investment firm Clearlake Capital Group for a potential sale of its assets.
The assets include THQ’s four studios and games in development (Metro: Last Light, Company of Heroes 2, South Park: The Stick of Truth, Saints Row 4, and WWE ’14.
Shares of THQ, which were briefly halted before the announcement, plunged 74 percent to close at 36 cents on the Nasdaq on Wednesday.
Mike Hickey, analyst at National Alliance Capital Markets, said “Product delays and poor-performing products in a videogame market that is struggling to reverse flagging sales “kind of circled in aggregate to lead to their demise.”
Hickey said larger game publishers like Electronic Arts Inc or Ubisoft Entertainment SA might take a look at some of THQ’s studios or intellectual property.
THQ has cut staff and shut noncore businesses in an effort to revive its business. THQ has studios in Austin, Texas, and Champaign, Illinois, as well as Canadian studios in Vancouver and Montreal. THQ said that foreign operations, including Canada, are not part of the bankruptcy filing.
Its studios and development teams will continue to operate during the sale process.