With THQ filing for bankruptcy protection
earlier this week, it was only a matter of time before the amounts owed to the company creditors became public. Probably the most important one is the WWE
, as the license that THQ has with the WWE to make the wrestling titles is more or less the companies most stable source of income and work.
Late yesterday, it was revealed by the WWE that THQ owes them approximately $45 million dollars, but they are trying to assure their investors that it will not impact the WWE’ financials per this press release that came out this morning:
STAMFORD, Conn.--(BUSINESS WIRE)--WWE (NYSE:WWE) is listed in THQ, Inc.’s recent bankruptcy filing as an unsecured creditor holding a claim of approximately $45 million reflecting the entirety of the existing multi-year agreement. Any impairment of a current THQ account receivable would be immaterial to WWE's financial statements. Even if the impact of THQ’s bankruptcy were detrimental to WWE, the Company does not believe that the ultimate economic impact for financial statement purposes would materially and adversely affect the results of operations or financial position of WWE in light of the strength of the WWE brand and the historical performance of WWE's video game business.
Regardless of whether the WWE will get shut out of reclaiming what is owed to them by the bankruptcy proceedings, it’s likely that THQ and the WWE relationship may be on rocky ground. This will be interesting to watch play out, because the WWE may ultimately pull the plug on the license with THQ or whatever company purchases its assets.