Take-Two pins WWE video game license

Take-Two is the new home of WWE video games, it has been confirmed by court documents following the deal being agreed by THQ.

According to court documents from THQ’s lawyers, the deal will save the publisher millions, with WWE and developer Yuke’s substantially reducing their claims against THQ.

“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” against THQ, lawyers for the company explained.

If an agreement had not been reached, WWE and Yuke’s claims “would certainly exceed $30 million and might exceed $60 million,” outlined the documents.

THQ’s contracts with WWE and Yuke’s will be terminated and new deals offered by Take-Two, which will also hire THQ staff which worked on WWE games, states court documents.

Financially THQ comes away from the deal having eliminated “very large damage claims”. Court documents reveal that WWE has agreed to waive its pre-bankruptcy claims of $45 million for annual royalty advances of $7.5 million which would have run through 2017. THQ will, however, pay WWE $650,000 in royalty payments relating to WWE games sold during the bankruptcy protection period.

Regarding Yuke’s, THQ has agreed to return its 14 per cent equity to the developer to avoid Yuke’s pre-bankruptcy claims of $15 million to $20 million. Yuke’s will receive a $250,000 royalty payment.

Take-Two has also confirmed to Polygon that Yuke’s will continue to develop WWE games.

“We can confirm that we have entered into an agreement to publish the WWE video game series that is developed by Yuke’s,” confirmed a statement. “At this time, the agreement is pending court approval and we anticipate that it will be finalized shortly. We are very excited about the potential of this agreement and will have more to share at the appropriate time.”

Source: Bloomberg