It looks like Take-Two Interactive has acquired the World Wrestling Entertainment game licence from THQ.
Bloomberg is reporting that the acquisition agreement – which is pending court approval – involves four parties: Take-Two, THQ, WWE, and Yuke’s Co. – the latter of which is a Japanese developer contracted by THQ to help produce the games.
According to court documents, the acquisition will save THQ millions by terminating its contracts with the WWE and Yukes, thus reducing claims against it.
“By working together to transition development of WWE games going forward the parties have minimized the harm to WWE and Yuke’s, which have, in turn, agreed to substantial reductions of their claims,” reads the document.
Without the agreement, WWE and Yuke’s claims against THQ could have exceeded US$60 million (AU$58 million).
Should the agreement be approved, the WWE will waive US$45 million owed to it by THQ, along with annual royalty advances of US$7.5 million for the licensing contract that runs until 2017.
For its part, THQ will pay the WWE US$645,000, and give Yuke’s shares valued at US$4.5 million.
Yuke’s will also get a US$250,000 royalty payment from the bankrupt publisher.
The court documents also state that Take-Two will hire the THQ employees that worked on its wrestling franchises.
THQ folded earlier this year, and most of its assets were sold at a subsequent auction, which gathered about US$72 million.
Its remaining assets are worth about US$29 million, according to THQ attorney Jeffrey C. Krause.