Following yesterday’s admission that the company was seeking “strategic alternatives” via financial consultants Centerview Partners, THQ’s stock dropped 50 per cent, finishing the day at US$1.50 a share.
In February, the beleaguered North American developer faced removal from the North American stock exchange after its shares fell below the minimum threshold of US$1 a share.
The delisting was avoided with the implementation of a 10-to-one reverse stock split, which turned the company’s 70 million shares into 7 million, boosting each share’s value back up to US$5.16.
However, the recovery was short-lived. At the time, the total value of THQ's shares stood at US$35.4 million. Following yesterday’s precipitous drop, it now sits at US$11.9 million.
In August 2010, THQ released the uDraw Game Tablet which met with some success on the Wii but was a massive commercial failure on other consoles.
The company’s woes were compounded last year when FPS Homefront received middling reviews, which resulted in a stock drop of 26 per cent – something THQ has struggled to recover from, despite better than expected sales of Saints Row The Third.
Desperate for cash, the company sold its UFC license earlier this year to Electronic Arts. It still holds the rights to the Darksiders, Saints Row, Warhammer 40,000, Metro, WWE, and Red Faction franchises, among others.