THQ Sends Letter to Employees Revealing Auction Results

January 23, 2013 -

Update: THQ has sold the WWE game license to Take-Two, according to IGN.

Original Story: THQ CEO Brian Farrell and President Jason Rubin sent a company-wide email today detailing how the auction for its various assets panned out. According to the letter, Sega will buy Relic Entertainment and the Company of Heroes franchise; Koch Media has picked up Volition, Saint's Row and the Metro property; Crytek has purchased the Homefront franchise, Take-Two bought the rights to an unannounced game called Evolve; and Ubisoft has bought THQ Montreal and the South Park RPG.

THQ went on to say that some of the assets have yet to be sold and will be handled under the Chapter 11 bankruptcy proceedings that are ongoing.

Two franchises that were not mentioned in Rubin's letter was the WWE series of wrestling titles and Darksiders. Darksiders developer Vigil Games has apparently laid off all of its staff as of today, according to various sources.

Rubin went on to say that employees are a part of studios that were sold this week should get an offer to work for the new company that purchased their respective studios, but he wasn't making a guarantee that some people would not be let go at the end of all of this.

Finally THQ said that any remaining studios that were not purchased would inevitably be let go.

The full letter can be found below (as provided by Kotaku):

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:

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

Source: Kotaku


Comments

Re: THQ Sends Letter to Employees Revealing Auction Results

I'm concerned about Vigil; they weren't mentioned and that potentially leaves the future of the Darksiders franchise in doubt.

However, I'm more concerned about the recent news that Deep Silver will apparently be developing future installments of the Saints Row franchise from here on in.  After Saints Row: The Third, I was looking forward to seeing what Volition would do with their fourth installment, as they said it would be crazier as they would be putting in things they didn't have time for in SR3.  Now we'll probably never no, if Deep Silver has their own plans.

On the other hand, maybe this could free-up Volition to do a followup finally to Freespace 2 after all these years.

Re: THQ Sends Letter to Employees Revealing Auction Results

Is this the end of Vigil Games and the Darksiders franchise ? to bad both had so mouch potential

Re: THQ Sends Letter to Employees Revealing Auction Results

While glad that the South Park game is safe from the sound of it, seeing Ubisoft get it makes my eye start twitching thanks to the knowledge it'll likely be using Uplay now...

Re: THQ Sends Letter to Employees Revealing Auction Results

Better Uplay than Origin. Though, better Steamworks than Uplay.

---You are likely to be eaten by a Grue.

Re: THQ Sends Letter to Employees Revealing Auction Results

Damnit, I hope Vigil comes out of this okay.  I want more Darksiders games!

 
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