Former Video Game Giant THQ Dissolving

Ross Lincoln is a Deadline contributor.

THQ, a onetime video game industry titan that published franchises like Saints Row, Metro and Homefront, is being sold off piecemeal to industry rivals as part of bankruptcy proceedings. Some of its most valuable titles will be acquired, including gamemaker Ubisoft purchasing THQ Montreal outright and all assets associated with the long-in-development South Park: The Stick Of Truth. THQ had hoped a stalking horse bidder arrangement reached with Clearlake Capital Group in December would allow the company to remain intact. However, CEO Brian Farrell informed staff in a letter this morning that the company was being dissolved, adding that he expected “most employees of the entities included in the sale will be offered employment by the new owners.” THQ suffered several setbacks beginning in 2011 stemming from overexpansion (including attempts to branch out into TV) and flopped games. Most notably, the uDraw Tablet for Wii, Xbox 360 and PlayStation 3 tanked, with more than 1 million units unsold — a failure later cited by the company as a primary reason for a $100 million shortfall. Layoffs, the closure of studios in Australia and Japan and a reverse stock split in July to prevent a NASDAQ delisting failed, and THQ filed for bankruptcy in December.

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