THQ Could Face Sale or Bankruptcy After $21 Million Loss

Wedbush Morgan's Michael Pachter deems THQ as "not investable for most institutions".

Posted By | On 06th, Nov. 2012


And here we thought the delay of key titles was due to product quality. THQ has actually been reeling from $21 million USD in losses, with games like Darksiders 2 under performing immensely since release with only 1.4 million copies sold.

Wedbush Morgan’s Michael Pachter painted a very grim picture of the future of THQ. “Should its financial position continue to deteriorate, we expect THQ to raise financing through an equity sale that could lead to dilution of existing shareholders We expect creditors to be asked to renegotiate terms at a discount; if they are unwilling, bankruptcy is possible.”

“Although THQ has been able to lower its cost structure through layoffs and a streamlined release slate in order to temporarily improve profitability, it is unlikely to return to profitability unless its revenues once again begin to grow,” stated Pachter. He finished by stating, “We do not believe THQ is investable for most institutions.”

Source: GIBiz


Amazing Articles You Might Want To Check Out!

Share Your Thoughts Below  (Always follow our comments policy!)



Keep On Reading!

Ubisoft Says it Has “Started an Exploration Phase on the Rayman Brand”

Ubisoft Says it Has “Started an Exploration Phase on the Rayman Brand”

Following recent reports that a Rayman remake is in the works, Ubisoft has stated that it has started explorin...

EA Sports FC 25, Astro Bot Were the US’ Bestselling Games in September

EA Sports FC 25, Astro Bot Were the US’ Bestselling Games in September

Other new releases such as The Legend of Zelda: Echoes of Wisdom, Warhammer 40,000: Space Marine 2, and others...

PS5, Xbox Series X/S, and Switch All Saw Sharp Year-on-Year Declines in US Sales in September

PS5, Xbox Series X/S, and Switch All Saw Sharp Year-on-Year Declines in US Sales in September

Hardware spending in the US fell by 44 percent year-on-year to $251 million, which is the lowest it has been f...

Guilty Gear Strive Balance Update Coming October 31st

Guilty Gear Strive Balance Update Coming October 31st

All 28 characters have received adjustments, from buffs and cancels into other techniques for increased combo ...

Fallout: London Crosses 1 Million Downloads

Fallout: London Crosses 1 Million Downloads

The total conversion for Fallout 4 recently received a massive update, which restores missing dialogue and fix...

The Rogue Prince of Persia is Now Steam Deck Verified

The Rogue Prince of Persia is Now Steam Deck Verified

Evil Empire warns that Steam Deck players "may experience occasional drops in frame rate" in some sections of ...