Court documents filed in a lawsuit by defunct publisher THQ against EA and UFC over UFC game licensing have revealed that EA considered buying THQ a year before the latter went bankrupt.
THQ described as "wrongful" EA's acquisition of the UFC license adding that the company "began to explore strategic alternatives" in late 2011.
These options included "a sale of the company to private equity or an industry partner. EA was a logical party to approach, given its indications of interest in the UFC Franchise."
According to the court documents:
"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, [2011] high-level meeting, several discussions, and a review of management projections, EA broke off negotiations, professing disinterest."
THQ folded earlier this year after failing to find a buyer who could draw the company out of its financial difficulties. The publisher says EA was only interested in certain THQ IPs, especilly the UFC series. When THQ's assets went up for sale EA bought none of the franchises which were available.
"EA, for its part, wanted to acquire only the choicest portions of THQ rather than commit to the company as a whole as a strategic acquirer.
"The UFC Franchise was a significant, saleable asset in THQ's gaming portfolio. with a net present value of about $20 million at the time. However, with Zuffa's determination to capture the additional value to be gained in a transfer of the UFC Franchise to EA, THQ had no choice but to seek a resolution with Zuffa."
EA acquired the UFC license in June 2012 and its first game within the franchise, EA Sports UFC, will launch on PS4 and Xbox One in early 2014.
THQ is seeking at least $10 million in damages from EA.
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