This is the reason why you buy the BIG company not the small ones! EA gets the WCW wrestling license from THQI, a small victory for E.A. but a major devastation for T*HQ. I don't think this news was worth an 8 point drop in THQI, but I'm still glad I'm not holding it. Go EA! Swallow some more competition!
I don't think THQ came out on the short end of the stick in this deal. ERTS probably paid in the area of $10-$15 million bucks just for the license to WCW, and won't be able to sell any games until mid 1999. By that time, THQ will have milked WCW until everyone was tired of it...and ERTS probably will be stuck with selling low volumes of WCW titles at low margins. They'll be chasing phantom dollars and diluting their EPS. The big companies may have all the cash, but it doesn't mean they always make the best decisions. IMHO