THQ stock plummets 50% as game publisher’s future looks dim
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With its next three games delayed and the company seeking an investor or buyer to help it stay afloat, shares in troubled video game publisher THQ plummeted 50% on Tuesday.
The stock, which dropped $1.52 to close at $1.50, has fallen 80% since the start of the year and 99.6% from its high in March 2007.
The Agoura Hills game company’s total market value is now $10.28 million.
On Monday, THQ postponed its highly anticipated “South Park: The Stick of Truth” from its fiscal fourth quarter, ending March 31, 2013, to its first quarter for fiscal 2014. It also pushed back “Company of Heroes 2” and “Metro: Last Light” to March from early 2013.
More significantly, THQ revealed that it has enlisted advisory firm Centerview Partners to help it raise capital or seek other strategic alternatives to stay afloat.
Investors are apparently pessimistic about the company’s prospects to do so, or the price it could fetch in a sale, leading to Tuesday’s sell-off.
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