Publisher THQ took a hard hit today, as stocks dove 50 per cent after the company’s troubling Q2 financial report.
Yesterday the firm told investors it would be delaying all of its fourth quarter titles, and had hired a mergers and acquisitions consultant to discuss its strategic options.
The lack of a QA session at the end of yesterday’s earnings call was not a good sign, and investors have responded with a vengance.
Though prices have recovered four cents after hours, shares fell by $1.52 to close at $1.50 after the previous day’s close of $3.02.
THQ faces a serious shortage of capital due to reduced revenues after a year of budget cuts.
While this has helped the publisher drastically reduce operating losses, the decimation of its product line-up does not bode well for increased sales.
With $100 million in face value of convertible notes due in less than two years, the company called in Centerview Partners to review their "strategic alternatives," a sign the company may be looking for a buyer.