lost
03-01-2009, 05:45 AM
http://i6.photobucket.com/albums/y242/LostGames/50bots3.jpg
A Denver based analyst has put the odds off videogame publisher THQ going bankrupt at 50/50. He believes that dwindling sales and weakening core brands will be to blame should the company hit rock bottom. The company recently released 50 Cent: Blood on the Sand and Warhammer: Dawn of War II.
“You have mediocre product and you’re running out of cash,” said Michael Hickey, an analyst with Janco Partners Inc. in Denver, who put the odds of THQ going bankrupt at 50-50. “Not the situation they want to be in right now.”
THQ executives are scrambling. Chief Executive Brian Farrell last month launched an aggressive turnaround plan, slashing costs for next year by $220 million and laying off almost 600 employees.
Farrell dismissed talk of takeovers and bankruptcy as gossip.
“I know that makes for good print and sells newspapers, but those aren’t the kind of things we focus on right now,” Farrell told the Business Journal. “When the stock price is depressed, the naysayers can have their day in the sunshine. But we have a plan that we’re very confident will give us cash and return the company to profitability.”
Hopefully Mr. Farrell is right. You can read more analysis at the LA Business Journal. (http://www.labusinessjournal.com/article.asp?aID=29426966.7104656.1750892.1954275.5 632346.429&aID2=134675)
But I want more 50 Cent!
A Denver based analyst has put the odds off videogame publisher THQ going bankrupt at 50/50. He believes that dwindling sales and weakening core brands will be to blame should the company hit rock bottom. The company recently released 50 Cent: Blood on the Sand and Warhammer: Dawn of War II.
“You have mediocre product and you’re running out of cash,” said Michael Hickey, an analyst with Janco Partners Inc. in Denver, who put the odds of THQ going bankrupt at 50-50. “Not the situation they want to be in right now.”
THQ executives are scrambling. Chief Executive Brian Farrell last month launched an aggressive turnaround plan, slashing costs for next year by $220 million and laying off almost 600 employees.
Farrell dismissed talk of takeovers and bankruptcy as gossip.
“I know that makes for good print and sells newspapers, but those aren’t the kind of things we focus on right now,” Farrell told the Business Journal. “When the stock price is depressed, the naysayers can have their day in the sunshine. But we have a plan that we’re very confident will give us cash and return the company to profitability.”
Hopefully Mr. Farrell is right. You can read more analysis at the LA Business Journal. (http://www.labusinessjournal.com/article.asp?aID=29426966.7104656.1750892.1954275.5 632346.429&aID2=134675)
But I want more 50 Cent!