THQ has revealed, via a press release, that they have entered into secret negotiations with an unnamed financial sponsor. The nature of the sponsorship is being purposefully withheld until such time as any potential deal is finalised. Exactly who THQ is in negotiations with is anyone’s guess; it could be a financing institution, rival publisher or an individual with too much money. It’s also unknown as to whether this deal involves simple financial aid or a complete buyout. Whatever the case may be, THQ has warned that if the deal goes through, then there could be “significant and material dilution to shareholders”.
Earlier this month, THQ announced that it had defaulted on a $50 million loan from lender Wells Fargo. A forbearance agreement has, however, been made between the two companies . That basically means that Wells Fargo has agreed to give THQ more time to settle its debts. The aforementioned negotiations with that mystery sponsor couldn’t have started at a better time it seems.
Finally, via the same press release, THQ announced the resignation of their chief financial officer and executive vice president Paul Pucino.