On the eve of the auction that’s set to potentially split THQ assets and deliver them the highest bidder, it’s been revealed that South Park Digital Studios has filed a preliminary objection to THQ’s proposed sale of South Park: The Stick of Truth.
THQ and South Park Studios first entered into a Deal Memo that allowed THQ use of certain South Park trademarks and copyrights on 29 June 2011. South Park Studios’ objection claims that the Deal Memo does not allow any other parties use of the South Park IP, so anyone that purchases The Stick of Truth isn’t permitted to use it. It continues to say that THQ owes South Park Studios approximately $2.275 million.
South Park Studios continues to say that they reserve “the right to exercise [their] option to acquire from THQ all elements of the games and related products under the Deal Memo.”
THQ has filed a reply to the objection on 21 January, requesting that the objection is overruled, asserting that they’re working on a consensual resolution with South Park Studios. THQ also is arguing that regardless of the Deal Memo, the South Park license is exclusive and therefore transferable. THQ also say that they’re “evaluating the amount that South Park asserts is owing” and plans to work with South Park Studios in regards to the amount they owe.
THQ is being auctioned off today at 3.00 pm EST. If its assets make more than $60 million, it will be sold off piecemail to those who’ve made the individual bids on assets. If $60 million is not made at the auction, the whole of THQ will go to the Clearlake Capital Group as previously planned.
We’ll let you know how the auction goes.
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