THQ stock drops by 50%, bankruptcy fears roam

THQ posted their Q2 financial report last night while announcing delays to several prominent titles, now there are fears the company could go broke.

Those delays include Metro: Last Light, South Park, and Company of Heroes. THQ also announced losses of $21 million. However, that may not be the worst news of the day as investors remain nervous of the publisher's future. According to this Reuters report, THQ's stock took a massive nose dive since yesterday.

The report states that THQ's stock dropped 46% and mark's the company's biggest single-day loss in years. Reuters states that the reason for the dip mainly stems from Darksiders 2's poor financial outlook and being called a disappointment. The game has only sold 1.4 million units and reportedly needed to sell more than 2 million to actually make a profit.

Wedbush Morgan analyst Michael Pachter had this to say about THQ's future;
“Should its financial position continue to deteriorate, we expect THQ to raise financing through an equity sale that could lead to dilution of existing shareholders.

“We expect creditors to be asked to renegotiate terms at a discount; if they are unwilling, bankruptcy is possible. Although THQ has been able to lower its cost structure through layoffs and a streamlined release slate in order to temporarily improve profitability, it is unlikely to return to profitability unless its revenues once again begin to grow.”
It was originally thought that Saints Row: The Third would be able to save THQ, but that looks like a long shot now.