By James Caldwell, PWTorch assistant editor

Thursday Update: Thursday evening, WWE issued a formal response to THQ's bankruptcy filing, while also noting that THQ owes WWE "approximately $45 million." According to WWE, the amount "reflects the entirety of the existing multi-year agreement."

WWE assured investors that even if WWE did not receive what they are owed, it would not affect their financial position.

WWE also said they believe the "strength of the WWE brand and the historical performance of WWE's video game business" will shield WWE from being negatively affected in the long-term.

Wednesday Evening Update

WWE released a statement Wednesday evening addressing their video game partner, THQ, announcing bankruptcy:

"WWE is following the developments of THQ's bankruptcy filing today and proposed sale under Bankruptcy Code Section 363. The Company anticipates actively participating within this proceeding."

Caldwell's Analysis: "Actively participating" is the key phrase. It will certainly lead to speculation on WWE possibly buying assets or making a financial investment in the future of their video games.

Original Story Wednesday Afternoon

THQ, the video game partner of WWE, announced Wednesday that the company will file for bankruptcy. THQ, which is a publicly-traded company, also temporarily halted trading of shares.

THQ said the company's assets will be purchased by the "affiliates" of Clearlake Capital, which is a company that describes itself as an investment firm focused on "private equity and special situation transactions."

As part of THQ selling its assets to Clearlake, THQ has filed for Chapter 11 bankruptcy in a U.S. federal court in Delaware. The company stock was last listed at $1.22, down 84 percent year-to-date.



When the news came out Wednesday afternoon, THQ's stock price plummeted as investors sold off shares in a last-ditch effort to salvage their investment. THQ then resumed trading after the stock price bottomed out at $0.57 per share.

Effect on WWE: It remains to be seen how this affects WWE's video game business going forward. One of the key factors will be whether THQ is re-organized following Clearlake's purchase or whether the assets are auctioned off, which could break up the video game company's business model.

[ Initial Report here at Marketwatch.com ]

We suggest these recent related articles...

WWE NEWS: Superstars SPOILERS - Results from Chicago Raw

WWE NETWORK: Monday, Oct. 12 Schedule - Raw pre-show, Sting DVD preview

WWE NEWS: Lana & Rusev reportedly engaged - follow the interesting 2015 timeline