I agree with Vic.
This board should not suffer from "GroupThink."
Correct me if I am wrong, but didn't WCW vs. The World put THQI on the map last year?? If Farrell willingly terminated this license with Turner, then I question his judgement. Sure, THQ wants to pursue higher margin business, blah blah blah. But, the WCW license has proven to be a CASH COW even if the margins aren't as good as Farrell would like. THQ could pursue higher margin business WHILE keeping the WCW license.
Using the logic that Farrell is willing to drop profitable lines to purse higher margin business, then Farrell would have dropped the Gameboy business long ago. The WCW license makes money, plain and simple, and it's a franchise license. It's sexy. I don't know if it's just me, but I'd take WCW over Rugrats anyday.
Given the 1998 lineup versus the 1997 lineup, I still believe THQ will continue to post better earnings each quarter. However, a large percentage of that growth will rest with a lame duck license.
The balance sheet is still rock solid, and I still like the business plan, and I like Farrell's ability to step up in the face of adversity. But I challenge those who suggest that Farrell willingly dropped the WCW license. THQ lost it.
Best regards,
Joe Valenzuela |
