No More Child’s Play for THQ
On Wednesday, video game maker THQ Inc. (NASDAQ:THQI) announced plans to leave the children’s licensed entertainment business as part of a new business strategy, according to the Hollywood Reporter.
THQ, which has lost money the last four out of five years on its kids offerings, has already started severing its ties with kids’ licensed entertainment companies, such as DreamWorks Animation (NASDAQ:DWA) and Viacom’s Nickelodeon (NYSE:VIA), but said it plans to keep selling specific titles. THQ’s kid offerings include “Puss in Boots,” “SpongeBob” and “Kung Fu Panda” games, among others.
The game maker plans to focus on its “core video game franchises and digital initiatives,” and especially hopes to “accelerate digital revenues by extending and supporting key console launches and to create dedicated digital properties for emerging platforms,” said the report.
Here’s how shares are reacting to the news:
THQ Inc. (NASDAQ:THQI): THQI shares recently traded at $0.70, down $0.04, or 5.41%. They have traded in a 52-week range of $0.63 to $6.53. Volume today was 1,835,766 shares versus a 3-month average volume of 2,121,830 shares. The company’s trailing earnings are $-2.77 per share.
DreamWorks Animation SKG Inc. (NASDAQ:DWA): DWA shares recently traded at $19.45, up $0.34, or 1.78%. They have traded in a 52-week range of $16.34 to $30.73. Volume today was 378,385 shares versus a 3-month average volume of 928,929 shares. The company’s trailing P/E is 11.20, while trailing earnings are $1.74 per share.
Viacom Inc. Class A Common Stoc (NYSE:VIA): VIA shares recently traded at $54.50, up $0.38, or 0.7%. They have traded in a 52-week range of $44.10 to $60.90. Volume today was 11,981 shares versus a 3-month average volume of 23,961 shares. The company’s trailing P/E is 15.17, while trailing earnings are $3.59 per share.