Things over at THQ aren’t going so well according to a new report from Games Industry International. Apparently the company is struggling and may have to liquidate or face bankruptcy in the near future.
“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,” remarked Wedbush Morgan’s Michael Pachter.
THQ’s management has come under question after a number of delays on games such as South Park: The Stick of Truth, Company of Heroes 2 and Metro: Last Light with little to report to investors. That doesn’t sound overly encouraging in my opinion. Is this the end of THQ? Or just the beginning of something new? Time will tell.
“Management has a track record of over-promising and under-delivering, and the company has been in turnaround mode for the last five years. The additional game delays, hiring of a financial advisor and refusal to take questions increase our skepticism that a turnaround plan can be executed before the company runs out of cash,” said Pacther.
“We do not believe THQ is investable for most institutions.”
Check back soon for more updates on the situation over at THQ, until next time – good gaming.