WWE's video game license goes to Take-Two

Take-Two Interactive is taking over the WWE video game license after THQ went bankrupt.

Bloomberg reported that WWE and Yuke's reached a deal with THQ that allows the companies to work with Take-Two, which has agreed to hire THQ's employees who worked on the wrestling games.

THQ also gets out of having to pay WWE and Yuke's millions of dollars, millions of dollars, millions of dollars (as the Prime Time Players would say).

WWE agreed to waive its pre-bankruptcy claims of about $45 million and any claims for annual royalty advances of about $7.5 million for the licensing contract that would have run through 2017. THQ will pay WWE $650,000 in royalty payments for the WWE games sold while under bankruptcy protection.

THQ owns about 14 percent of Yuke’s equity and has agreed to give the Japanese developer the 1,552,000 shares, about $4.5 million in value, in exchange for a release of Yuke’s pre- bankruptcy claims of about $15 million to $20 million. Yuke’s will also get a $250,000 royalty payment.

So it sounds like the WWE '13 engine may survive.