PWInsider - WWE News, Wrestling News, WWE



By Mike Johnson on 2013-02-20 08:57:59
The United States Bankruptcy court in Delaware officially moved yesterday to approve the plan severing WWE's contractual ties to THQ, allowing the company to sign a new deal for Take Two Games to develop, release and distribute their videogame franchise starting with the already in development WWE '14 videogame.

THQ had been working on transferring the WWE rights for some time, compiling a list of ten potential buyers. According to documents filed, three of those buyers completed due diligence with THQ, WWE and Yukes but none were willing to take over the existing contracts due to the huge amount of debt owed to WWE and Yukes.

Take Two, however, expressed interest in working with WWE and Yukes for future development of games if they were allowed to enter into a new, fresh contract with new terms. THQ facilitated those negotiations between the parties while also negotiating releases from their contractual obligations with WWE and Yukes. Basically, THQ helped set their former partners up with a new company in exchange for having some of the money they would owe the entities wiped away.

THQ claimed to the court they would save millions by reducing claims against them. The court agreed.

The ruling resulted in:

*THQ terminated their relationship with WWE and give up the rights to all future WWE games.

*In exchange, WWE waived any rights to legally pursue THQ for damages.

*WWE will receive a payment of $650,000 for royalties owed for sales of WWE '13 during the bankruptcy process.

*THQ terminates their relationship with Japanese game development company Yukes, which worked on the WWE games. This allows Yukes to enter a new relationship with Take Two.

*THQ will transfer all THQ ownership of Yukes stock in exchange for Yukes giving up claims of damages ranging from $15-$20 million against THQ.

*THQ will pay Yukes $250,000 in royalties owed for sales of the WWE '13 videogame during the bankruptcy period.

Take Two now takes over the employment of THQ's WWE '14 "fight team" working on the WWE gaming franchise, saving THQ from saving to terminate their employment and removing a potential six figure severance payday from THQ's financial ledgers.

THQ is in the process of having its assets sold off piece by piece by the bankruptcy court after failing to have all of its assets sold off at once to an investment firm that would have pumped new capital into THQ and continued it as an operational company.

An official announcement is forthcoming from WWE and Take Two.

If you enjoy you can check out the AD-FREE PWInsider Elite section, which features exclusive audio updates, news, our critically acclaimed podcasts, interviews and more, right now for THREE DAYS free by clicking here!