THQ Nordic buys Deep Silver

(Chapter 7 and beyond)

THQ Nordic buys Deep Silver

Postby ShenmueTree » Wed Feb 14, 2018 6:57 am

So, THQ Nordic just acquired Koch Media GmbH, which owns Deep Silver, who is publishing and helping to fund Shenmue 3.

I really hope all these deals and acquisitions do not negatively impact the development and marketing of the game.

Mostly I am interested what this means for the S3 Deep Silver deal? Can THQ cancel it? How does Sony fit in? Surely the marketing contract didnt account for so many complications.
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Re: THQ Nordic buys Deep Silver

Postby Kiske » Wed Feb 14, 2018 9:37 am

Why would they cancel Shenmue 3?

Koch Media GmbH and its subsidiaries will continue to operate as independent entities. However, THQ Nordic sees potential for revenue synergies and margin improvements, e.g. from partnerships from both groups’ IPs, assets, and development capacity. In addition, THQ Nordic will continue executing on its growth strategy of acquiring IPs, studios, and other assets that are value-enhancing to the group following the acquisition of Koch Media.


The full press-release:
http://www.thqnordic-investors.com/en/r ... Id=2819265
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Re: THQ Nordic buys Deep Silver

Postby Abraham_1 » Wed Feb 14, 2018 10:00 am

ShenmueTree wrote: Mostly I am interested what this means for the S3 Deep Silver deal? Can THQ cancel it? How does Sony fit in? Surely the marketing contract didnt account for so many complications.

It depends on the nature of that deal and the contract. There may have been a clause within the contract allowing for Deep Silver to terminate the contract in certain circumstances and, therefore, the funding they will provide towards the game. This acquisition would mean that ability would be passed onto THQ.

However, I doubt they will terminate the contract. Whilst there may be such a clause in place, I do not see THQ ending this relationship for two reasons:

One, it has been about half a year since the partnership between Deep silver and Shenmue 3. As of then, they have already helped provide a significant amount of funding for Shenmue 3, as evidenced by Yu Suzuki’s statements. They probably cannot reclaim what they have already paid for funding unless such a clause exists, which would probably be deemed unfair per the Consumer Rights Act 2015 (or whatever similar piece of legislation exists in the US). Why would they back out now after providing so much in funding?

Two, one should look at why THQ acquired Deep Silver in the first place. It is evident that they don’t have as much exposure to the games industry as they did in the past. Shenmue 3 is Deep Silver’s most reported on game that they are publishing, as well as Kingdom Come Deliverance. Would they really want to end deals with two games which, if popular, could provide a fantastic foot in the door for THQ in the gaming world again?

So in conclusion, I think this could actually be good. THQ managers will want to please their shareholders and prove the worth of this acquisition so they may feel inclined to invest more and increase funding for Shenmue 3.
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Re: THQ Nordic buys Deep Silver

Postby Abraham_1 » Wed Feb 14, 2018 10:20 am

Kiske wrote: Why would they cancel Shenmue 3?

Koch Media GmbH and its subsidiaries will continue to operate as independent entities. However, THQ Nordic sees potential for revenue synergies and margin improvements, e.g. from partnerships from both groups’ IPs, assets, and development capacity. In addition, THQ Nordic will continue executing on its growth strategy of acquiring IPs, studios, and other assets that are value-enhancing to the group following the acquisition of Koch Media.


The full press-release:
http://www.thqnordic-investors.com/en/r ... Id=2819265

Good find, I didn’t know that. Not too surprising considering the size of Koch Media. However, THQ, as the parent company, can still exert power over Koch Media, even as an independent entity. For example, ownership has changed and shareholders can essentially vote in new management for Koch Media. Of course, THQ can give them more powers to operate independently, but they are still, for the most part, in charge of assets and liabilities, meaning they could provide more investment to Koch who could in turn invest more into Shenmue or Kingdom Come.
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Re: THQ Nordic buys Deep Silver

Postby Let's Get Sweaty » Wed Feb 14, 2018 12:06 pm

Abraham_1 wrote:Two, one should look at why THQ acquired Deep Silver in the first place. It is evident that they don’t have as much exposure to the games industry as they did in the past.


Just to clear up any confusion on this, THQ Nordic is not the THQ that used to publish the South Park and WWE games. That company went bankrupt in 2002 and the name was bought by Nordic Games, which rebranded itself accordingly.
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Re: THQ Nordic buys Deep Silver

Postby punkmanced » Wed Feb 14, 2018 12:29 pm

And the epic (behind the scenes) saga continues! :-D
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Re: THQ Nordic buys Deep Silver

Postby ShenmueTree » Wed Feb 14, 2018 1:09 pm

Kiske wrote: Why would they cancel Shenmue 3?

Koch Media GmbH and its subsidiaries will continue to operate as independent entities. However, THQ Nordic sees potential for revenue synergies and margin improvements, e.g. from partnerships from both groups’ IPs, assets, and development capacity. In addition, THQ Nordic will continue executing on its growth strategy of acquiring IPs, studios, and other assets that are value-enhancing to the group following the acquisition of Koch Media.


The full press-release:
http://www.thqnordic-investors.com/en/r ... Id=2819265



Thats great news! Thanks for showing me that

As for your comment asking me why they would cancel Shenmue 3, that is kind of a misinterpretation of what I asked. What I asked is if THQ Nordic cancel the publishing deal if they chose to. Or can they not do it, as it is grandfathered into the purchase I didnt imply they would cancel it in any way. Also I questioned what Sonys involvement would now be?

Originally Sony were set to provide marketing for YSNet self published Shenmue 3. Then Deep Silver become the publisher. And now finally Deep Silver are acquired by THQ Nordic, it makes sense to inquire if the initial contracts considered such complications. Like, doent THQ Nordic usually supply their own marketing for their IP?

But thankfully as you pointed out that Deep Silver will operate standalone, which means things dont really change.
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Re: THQ Nordic buys Deep Silver

Postby Abraham_1 » Wed Feb 14, 2018 2:02 pm

Let's Get Sweaty wrote:
Abraham_1 wrote:Two, one should look at why THQ acquired Deep Silver in the first place. It is evident that they don’t have as much exposure to the games industry as they did in the past.


Just to clear up any confusion on this, THQ Nordic is not the THQ that used to publish the South Park and WWE games. That company went bankrupt in 2002 and the name was bought by Nordic Games, which rebranded itself accordingly.

Yeah, I know. It was bought by a wealthy Swede if I remember correctly. But the name THQ is still there and has its own goodwill and reputation, even though it’s different to the original THQ.
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Re: THQ Nordic buys Deep Silver

Postby Hyo Razuki » Wed Feb 14, 2018 3:18 pm

Quoting from the press release: " Koch Media will continue to operate as a separate entity within the THQ Nordic group. Focus for the group will be to deliver on the full pipelines of THQ Nordic and Koch Media. No restructuring or cost saving programmes are planned."

This wait is really starting to wear me out. This game needs to come out, finally. I hope Yu is gonna finish it in 2018.

We'll have to wait and see. I hope that, just in case, Yu has enough money from the Kickstarter and slacker backer campaign left to finish the game on a smaller scale if THQ Nordic pull the plug on the Deep Silver deal with YS Net.
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Re: THQ Nordic buys Deep Silver

Postby Centrale » Wed Feb 14, 2018 4:10 pm

I can understand with the long and challenging history of this game that there are fears surrounding the possibility of anything undermining it as we apparently near the finish line. However, it's not really a well-founded fear to think that one company would acquire another in order to cancel, de-fund or otherwise disrupt one of the valuable properties that made acquisition appealing to begin with.

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Re: THQ Nordic buys Deep Silver

Postby Let's Get Sweaty » Wed Feb 14, 2018 4:18 pm

And if your goal is to use this acquisition to enhance your brand value and reputation, your best start isn't to become the company that bought up Shenmue 3 just to cancel it.
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Re: THQ Nordic buys Deep Silver

Postby BlueCreeperBoy12 » Wed Feb 14, 2018 8:47 pm

If they do anything to MY PRECIOUS...
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Re: THQ Nordic buys Deep Silver

Postby Telekill » Thu Feb 15, 2018 11:56 am

I'm not overly worried as I know we'll be getting Shenmue 3 regardless of what this acquisition means for Deep Silver. I just hope that it means that if Shenmue 3 sees whatever success marker they have for it that it will mean we can still potentially get Shenmue 4 with a publisher instead of a need for another Kickstarter campaign.
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Re: THQ Nordic buys Deep Silver

Postby WildManofBorneo » Thu Feb 15, 2018 11:58 am

FYI, THQ Nordic’s co-publishing accomplishments include: Ori and the Blind Forest, Quantum Break, State of Decay and Halo Wars 2.
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Re: THQ Nordic buys Deep Silver

Postby Crimson Ryan » Thu Feb 15, 2018 4:42 pm

Nordic Games have come a long way for sure..
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