Despite the fact that THQ is now out of business, they’re reportedly suing EA and Zuffa over what they claim was a fraudulent transfer of the video game rights to the UFC.
THQ produced the official UFC video games between 2009 and 2012.
They now allege that EA was originally in talks to purchase THQ before the latter’s dissolution sale, then went on to use information obtained during those discussions to negotiate a better deal with Zuffa. Zuffa eventually sold the UFC rights to EA, after paying THQ $10m in contract termination fees.
“Throughout 2011, THQ’s financial fortunes continued to decline,” THQ states in a recently revealed court document. “By the end of November 2011, THQ projected that it would run out of capital within several months and thereafter be unable to support its major pipeline projects, including the next games in the UFC franchise.
“EA was a logical party to approach, given its indications of interest in the UFC franchise. In early December 2011, EA and THQ discussed a potential sale of THQ as a whole to EA. THQ provided EA internal financial information, including detailed sales and revenue figures for the UFC franchise, and projected marketing expenditures on the next UFC franchise game.
“After a December 12, high-level meeting, several discussions, and a review of management projections, EA broke off negotiations, professing disinterest.”
After this deal failed to materialize, THQ claims that Zuffa wanted out of their arrangement. According to THQ, EA intentionally leaked information about THQ’s finances to Zuffa, in an effort to undermine their licensing deal.
THQ now says it is owed the financial value of the UFC rights. The dispute will now be settled in court.