Update (1/7/2013 @ 12:45 p.m.):

THQ is done. On Jan. 22, an auction will sell the gaming properties, studios, and assets of the publisher to the highest bidders on a title-by-title basis.

This is a drastic change from the plan that Jason Rubin laid out in his letter to fans, which claimed Clearlake Capital Group would purchase the majority of THQ’s assets (the studios and game properties) for $60 million. This would have kept THQ as one organization, but it also would have ensured that the investors in the bankrupt game company would receive pennies on their dollar.

Parties have come to agreement: THQI auction now on Jan 22nd. The auction will allow for piecemeal (“title by title”) sales of THQ assets — Hunter (@DDInvesting) January 7, 2013

Original story:

We originally reported that Clearlake Capital agreed to purchase THQ’s assets for $60 million quickly after the publisher declared bankruptcy. A judge blocked that procedure in favor of providing other companies the chance to bid on the embattled publisher, its games, and its studios.

Clearlake Capital agreed this morning to hear bids for individual titles, according to Distressed Debt Investing.

No deal yet for THQI. Clearlake has agreed to allow individual title bids, lower break fee, and extending timing to January 15th for bids. — Hunter (@DDInvesting) January 7, 2013

It’s likely that breaking up and selling THQ piecemeal will generate more cash than the $60 million Clearlake bid for the entirety of the game company.

Publisher Electronic Arts reportedly visited THQ sites today to help gather information on potential bids for certain properties. This news comes after Warner Bros. told Judge Mary Walrath of the U.S. Bankruptcy Court, District of Delaware, the official overseeing THQ’s bankruptcy proceedings, that it would investigate a bid if it had more time.

Clearlake proposed extending the timing to Jan. 15, but Judge Walrath declared that still wasn’t sufficient enough time for potential competing bidders.

Walrath asked that Clearlake work with the other interested parties — not all of which are public — to extend the timing further.

The hearing will reconvene this afternoon.