THQ Nordic Raises $225 Million To Buy Even More Franchises and Studios
I think THQ Nordic may have a shopping addiction. In just the past two years, they’ve bought numerous studios like Black Forest Games, HandyGames, Coffee Stain Studios, Bugbear Entertainment, Atari SA, and Koch Media/Deep Silver, along with franchises like Alone in the Dark, TimeSplitters, Dead Island, Saints Row, Goat Simulator, Carmageddon, Outcast, and much, much more. And the shopping spree isn’t over! The company just issued 11 million new shares, raising a whopping $225 million, which they plan to use to acquire even more stuff.
THQ Nordic CEO Lars Wingefors spoke to GamesIndustry.biz about the company’s strategy going forward…
“On the very long-term basis I want all my companies to be financed through the cashflow from making great games that fans and consumers will enjoy and pay for. However, our strategy right now is to build something substantial, diversified and evergreen through acquisitions and substantial organic development growth. As you know, we are just approximately 0.5% of the global market and have a long way to go before we reach the next level. By not using aggressive debt, like loans and bonds, as many others [companies do], we put all stakeholders in the same boat. It also creates a safer, long-term environment for all our great employees and business partners that don’t have to worry about our balance sheet for the next paycheck.”
It will be interesting to see if THQ Nordic’s big gamble pays off. So far, games like Darksiders III haven’t exactly set the world on fire. Hopefully the publisher’s next round of new titles, like Biomutant, Desperados III, and Dead Island 2 are better received, because I’d certainly love to see THQ Nordic succeed and actually do something with the countless properties they now own.
What do you think? Will THQ Nordic actually make something of themselves, or is this just a big card tower waiting to tumble?