Report: Multiple Companies in Bidding War for TimeGate IP

A bidding war has broken out for assets related to bankrupt developer TimeGate Studios, according to this Wall Street Journal report. According to WSJ rights to the first-person shooter Section 8 as well as TimeGate's unreleased free-to-play title Minimum are at the center of a feud between three separate companies including CNH Partners, France-based Atari SA and Southpeak Interactive Corp.

According to documents obtained by The WSJ, CNH Partners teamed up with developer Digital Tribe Games to offer $50,000 in cash plus a 25 percent royalty fee for Section 8 and Minimum, outbidding Atari SA. However, Southpeak said its offer of $40,000 plus 50 percent royalty also trumps Atari's offer. But for some reason the bankruptcy trustee working on TimeGate's case has endorsed the Atari bid. This did not sit well with CNH Partners, who has asked a bankruptcy judge to reopen the sale process and approve a live auction. Judge Jeff Bohm has scheduled a hearing Thursday to discuss the sale in the U.S. Bankruptcy Court of Houston.

The assets are what remains of TimeGate Studios, who sued publisher Southpeak in 2009 claiming that it was owed an undisclosed amount in royalties and that the publisher did not follow through with localization responsibilities for Section 8.

Southpeak countersued TimeGate, claiming it did not invest enough of its own capital into the game's development. An arbitration proceeding between the two companies ruled in favor of Southpeak, and awarded the company $7.35 million in compensatory damages and control of the Section 8 license. That decision was overturned last March in federal court, but TimeGate lost a subsequent court appeal in April of this year. In June TimeGate filed for Chapter 11 bankruptcy.

Source: Polygon

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