I knew there was a reason I bought more THQI at $25 near the end of the day, but I just couldn't put my finger on it. Oh yeah, Revenge.
As for the WWF/JAKK deal, it was my understanding as well that without JAKK, THQ doesn't get the deal. However, I'm not so sure that THQ will be risking more money than JAKK. As Kory said, everything is split evenly, with each side handling its core competency. I also agree that WWF profits will be down compared to WCW, unless the extra game platforms lead to higher sales. I mean, THQ will have N64, PSX, PC, Gameboy, and Dreamcast to choose from, just at the start. Revs from the latter three have been negligible so far, so I wouldn't count Farrell out. Who knows, maybe in two years we'll see a Java-internet only game. One other advantage to splitting the deal is that JAKK put up half the large up-front payment to Vince McMahon.
The real point here (are you listening Mr. Woodland?) is what THQ gets to buy with its monster WCW profits. Quest, Devil Dice, Rugrats, those were only the beginning. And all should have sequels in 1999. Ie, THQ is developing franchises and deserves a higher multiple.
Hmm, anyone think we're going to fill that gap on Monday? Not me.
Marc |
