THQ's financial plight has reached its lowest point yet after a quarterly conference call resulted in the company's stock price dropping over 50% yesterday. The stock continues to decline today, hitting $1.16 as of right now, down from its initial cost of near $3.00 prior to the conference call. Considering that less than a few months ago THQ went through with a 10:1 reverse stock split, today's news is both staggering and potentially irrecoverable.
To end the conference call THQ CEO Brian Farell denied question, stating he'd been, "advised not to conduct a [Q&A] session," because the company was currently, "exploring strategic alternatives," wit ha private equity company. Whether the meaning behind that statement implies an event similar to the sale of the UFC license to EA earlier this year or something more dramatic, only time will tell. Keep in mind that each of THQ's biggest properties have been delayed into March-May of 2013, another full quarter without a triple-A release.
When the delays became public, THQ president Jason Rubin reminded fans they were dedicated to quality products, and hoped fans would be patient. Whether THQ can last that long, potentially by going private and taking stockholders out of the picture, is another matter entirely.