THQ, Majestic Team on Sales
Video-game software publishers
THQ
(THQI)
and
Majesco Entertainment
(COOL)
announced a distribution agreement Thursday.
Under the deal, THQ will distribute 14 Majesco titles in Europe and other areas that use the PAL television standard. The companies did not give any financial terms for the two-year deal. However, both companies said in a statement that they expect to reap benefits from the deal, which will allow them to reach more markets.
"This initiative significantly expands Majesco's global presence," said Jesse Sutton, president of Majesco, in the statement.
"This is a great opportunity for THQ to expand its portfolio of products internationally," said Ian Curran, THQ's senior vice president in charge of European publishing.
Representatives for THQ and Majesco did not immediately return calls seeking comment.
Distribution agreements are typically low-margin deals, but they can bring in extra revenue to the distributor and help broaden its portfolio of titles.
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THQ will distribute console, PC and handheld games as part of its deal with Majesco. Among the titles the company will distribute are
Jaws Unleashed
,
Psychonauts
and
Age of Empires 2
.
The pairing teams one of the hottest video-game publishers with one of its weakest. THQ has seen
soaring sales in recent months, thanks to a series of hit titles.
Meanwhile, Majesco's CEO resigned last month amid
warnings of worse-than-expected sales leading some analysts to
question the company's long-term viability.
The deal was a boon for Majesco's stock Thursday. In recent trading after the announcement, the company's stock was up 12 cents, or 4.5%, to $2.78. Shares of THQ were off 40 cents, or 1.1%, to $34.74.
