News Article

THQ Could Lose Stock Market Listing

Posted by Thomas Whitehead

That's bad, by the way

Not long ago we revealed the positive news that THQ has two secret Wii U titles in the works, with Darksiders II and Metro: Last Light already unveiled for the new console way back at E3 2011. While that's the good news, unfortunately the developer is enduring some serious financial issues.

As reported by Gamasutra, THQ is in danger of being delisted from the Nasdaq stock exchange in July if it can't raise its share price above $1: the stock is currently worth around 70 cents. This follows reports that it's struggling to support its development projects, and confirmation last week that it has decided to stop producing children's licensed games.

While we're not stock market experts here at Nintendo Life, plummeting share prices and a Nasdaq delisting would be very damaging, leading to challenging times for one of Wii U's most enthusiastic supporters.

[via gamasutra.com]

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User Comments (21)

FOREST_RANGER

#1

FOREST_RANGER said:

That's not too great at all. I'd rather give a game developer another chance than see them go (and see those people lose their jobs).

Bankai

#2

Bankai said:

Before the whole "oh noes THQ is gone," delisting does not mean closed down. Its not a good thing, to be sure, but let's be accurate here.

Burning_Spear

#3

Burning_Spear said:

Spear has some experience in that field, and he can say that a delisting is not necessarily fatal. While it surely shows that the company is not doing as well as it has in the past, a delisting in itself is nothing more than Nasdaq housekeeping.

Ernest_The_Crab

#4

Ernest_The_Crab said:

Doesn't this just mean you can't buy and sell their shares on the stock exchange? I admit that's bad but it doesn't mean you can't still operate, seeing as plenty of private corporations are still in business.

In case anyone wants to know what delisting actually means there's an excerpt about it here:

http://en.wikipedia.org/wiki/Listing_%28finance%29

motang

#7

motang said:

Getting delisted is not good, I believe Atari has been delisted, and Midway before they went bankrupt.

Morphbug

#8

Morphbug said:

@Highwinter: THQ published Viva Piñata DS. I suppose it would be easier for Rare to use them again of they decide to make another game for a Nintendo console.

ThomasBW84Admin

#9

ThomasBW84 said:

As has been clarified already, this news doesn't mean that THQ is shutting down. It's the latest piece of bad news to hit the company and is certainly damaging, but they are very much in business at the current time.

Maggots

#12

Maggots said:

@11 DUDE YES... WHAT WAS I THINKING... i think that's what i meant all along

shingi_70

#13

shingi_70 said:

@12

you wouldn't want thq anyway as their the publisher. unless nintendo wanted to put out M rated games under that brand like Disney and miramax.

what's most immportant would be the dev teams and ip's.

Slapshot

#14

Slapshot said:

Everyone is so amped up about Darksiders II, but Metro: Last Light is the title that will seriously rock on a Nintendo platform!

CerealKiller062

#15

CerealKiller062 said:

I am willing to invest into this company, seeing as they are really desperate for the money, the thing is, its not a smart investment since they are really shakey. But since I am young and hopefully will make a killing once the products start coming out, I'll invest. I can only hope...

Knuckles

#16

Knuckles said:

Am i the only one happy that this developer isnt making licensed(kid) games anymore?

Capt_N

#18

Capt_N said:

Huh,... I always looked down on the majority of their licensed kid stuff like Nicktoons stuff, & Disney.

eviLaTtenDant

#19

eviLaTtenDant said:

I can only say that i'm looking forward to these two games and hope they do well since THQ's legacy has great potential. Destruction Derby, Broken Sword, Deadly Creatures, X , Conker's Bad Fur Day, Banjo games, Destroy All Humans, It's Mr. Pants, Lock's Quest, Moto GP, Red Faction, Sabre Wulf, Sonic Advance, Viva Pinata, Worms, You Don't Know Jack, ...

@Knuckles (16.): Nope, you're not. I mean i don't care if a company releases baddish games that don't appeal to me. As long as quality and quantity of the great ones don't have to suffer that is.
But if they can focus on those more there's hope they'll turn out even better. :)

StarDust4Ever

#20

StarDust4Ever said:

Maybe this could represent an ideal investment opportunity. I'm not one to play the stocks (it's kind of like a businessman's form of gambling, only it's based on strategy rather than luck alone - in other words, if you're good at it you can actually win oftentimes, quite the opposite of casinos), but at 70 cents a share, I could easily invest 35 bucks for 50 shares. That's actually cheaper than most typical retail games! If they file bankrupt, I don't lose much money, but if they hike up their britches and launch a successful stream of games on Wii-U, stocks will soar, and I could wind up making quite a handsome profit out of the whole debacle. Buy low; sell high! B-)

hydeks

#21

hydeks said:

NOOO! THQ CAN'T DIE!!!!!!!!! Release Darksiders 2 first, than I don't care :P

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