Take Two steps in for WWE and Yuke’s
The WWE games and their developer Yuke’s have found a home in Take Two, according to Bloomberg. The deal will save what’s left of bankrupt former publisher THQ from having to deal with damages claims of as much as $60 million.
“By working together to transition development of WWE games going forward the parties have minimized the harm to WWE and Yuke’s, which have, in turn, agreed to substantial reductions of their claims,” said lawyers in the related court papers. Without the agreement, the papers suggest that WWE and Yuke’s damages claims would have been at least $30 million, and possible even exceed $60 million.
WWE and Yuke’s existing contracts will be now terminated and the companies’ employees will be free to take up employment at Take-Two. The report adds: “WWE agreed to waive its pre-bankruptcy claims of about $45 million and any claims for annual royalty advances of about $7.5 million for the licensing contract that would have run through 2017″.
“THQ will pay WWE $650,000 in royalty payments for the WWE games sold while under bankruptcy protection. THQ owns about 14 percent of Yuke’s equity and has agreed to give the Japanese developer the 1,552,000 shares, about $4.5 million in value, in exchange for a release of Yuke’s pre- bankruptcy claims of about $15 million to $20 million. Yuke’s will also get a $250,000 royalty payment.”