Ubisoft Buying THQ? Report Cites 'Lengthy Discussions' Between The Two Companies

Just days after THQ filed for bankruptcy and began to relinquish its assets, reports have begun to surface of a potential buyer from the video game industry.

British gaming site MCV reported Friday that video game developer and publisher Ubisoft Entertainment (EPA: UBI) is considering an acquisition of THQ’s assets. Citing sources familiar with the matter, MCV said the French publisher has begun to actively pursue the bankrupt company’s wholly owned studios and various franchises.

THQ's in-house studios include Relic Entertainment, Volition, THQ Montreal and Vigil Games. The company owns a number of popular video game franchises including “Saints Row,” “Red Faction,” “Homefront,” “Metro” and “Company of Heroes.” When it announced its bankruptcy last week, president Jason Rubin was quick to assure fans that the future development of current, highly anticipated installments in the “Saints Row” and “Red Faction” series would not be affected by the shift.

Ubisoft acknowledged its interest in THQ's properties last month when CEO Yves Guillemot told a game industry website: "They have good things. We are always interested in good brands. For sure, it's something we can consider, but I can't tell you more."

MCV's sources said Ubisoft has held "lengthy discussions" with THQ for a deal. The main roadblock any negotiation is currently facing is price. Ubisoft is allegedly seeking a "bargain buy," and is willing to hold out until THQ decides to sell off specific properties rather than the entire inventory.

Ubisoft shares jumped more than 1 percent during trading Friday, rising as high as $7.85 in early afternoon trading.