Acclaim Reports Large Loss, May Face Bankruptcy

Thanks to Yahoo!/Reuters for its story revealing videogame publisher Acclaim Entertainment has announced a quarterly loss of $25.4 million, and warned of possible bankruptcy, since "needs new cash to replace a financing agreement... that expires on Aug. 4." Apparently the company "has signed a letter of intent with a different lender to borrow up to $30 million but the deal has not yet been completed." The long-standing publisher has also recently been sued by the Olsen Twins, although it still lists upcoming titles as including 100 Bullets, The Red Star, Worms Forts: Under Siege!, and Interview With A Made Man. Update: 07/03 01:34 GMT by S : Acclaim's 10-K financial statement reveals "notification from The Major League Baseball Player's Association (MLBPA) that we were late in making certain royalty payments and our license was terminated", and "due to failure to make certain royalty payments relating to the videogame title Turok: Evolution... our [Turok intellectual property] license agreement with Classic Media was terminated."

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Maybe this isn't necessarily a bad thing

[foidulus]

Obviously, Acclaim was a poorly managed company(who would actually make Olsen twins games!), so it might actually be a good thing if they went under. If they go under, their creditors will probably want to sell any assets that the company has of value, and that may very well include works in progress and trademarks so other, better managed companies can hopefully do some interesting things with all the stuff Acclaim has made over the years.