Anyone who’s been following THQ’s stock price over the last year will know that the company is not doing all that well. From a high of $6.53 back in February 2011, the value of one share in THQ (NASDAQ ticker THQI) is now sitting at just $0.66. It therefore came as no surprise to me when I read rumors over the weekend that THQ were cancelling their 2014 video game line-up, had binned their upcoming MMO game (titled Dark Millennium, which was/is to be based on Warhammer 40K) and were looking to tidy the company up for sale.
However, THQ have since hit back over the weekend (US time), with the company’s Australian PR firm releasing a statement saying that its 2014 games line-up has not been cancelled and that THQ has simply made a few strategic adjustments, like moving away from kids’ boxed games.
THQ has not cancelled its 2014 line-up, and has not made any decisions regarding the planned MMO. As part of the ongoing review of our business, we have made decisions to ensure that the company is strategically addressing the most attractive markets. As we have previously announced, we have dramatically reduced our commitment to the kids’ boxed games sector which leads to a significantly more focused release schedule moving forward. Our slate for calendar 2012 and beyond is focused on high-quality core games and continues to build our digital platform and business. We are excited for our pipeline of original and high-quality content along with our relationships with some of the best talent in the industry.
While THQ don’t say yes or no regarding Dark Millennium, it is clear they are still continuing business. With a share price of 66 cents and a market cap of just $45 million, perhaps the rumor should not have been about THQ itself looking to offload its business, but instead regarding potentional purchasers circling THQ with a buyout in mind…