THQ Inc., World Wrestling Entertainment, Inc., and JAKKS Pacific, Inc. have reached settlement agreements with respect to the WWE video game and toy licenses, and the THQ/JAKKS Pacific joint venture.
Under the three-party settlement, all claims have been withdrawn and all litigation ended among the parties without any party admitting any wrongdoing. THQ will pay WWE $13.2 million and, additionally, THQ has entered into a new eight-year video game license directly with WWE starting January 1. The license is three years longer than the renewal term under the previous arrangement.
THQ will also pay JAKKS Pacific $20 million over the next four year, in addition to its preferred return payment to JAKKS for the period ending December 31, 2009. The payments will be $6 million due June 2010 and June 2011, and $4 million due June 2012 and June 2013. The THQ/JAKKS Pacific joint venture will terminate effective December 31, 2009. For more information regarding the new license agreement between WWE and THQ, visit http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-news&nyo=0.