All articles tagged with #earnout
Krafton reportedly agreed to pay up to $250 million in earnout to Unknown Worlds’ developers for Subnautica 2 after strong early sales, ending a legal dispute that led to the ousting and later reinstatement of the studio’s leadership. The payout is said to equate to about 35% of Krafton’s last year’s operating profit, according to The Korea Economic Daily (via IGN).
Krafton has been ordered to pay Unknown Worlds a $250 million earnout after Subnautica 2 surpassed 4 million copies sold since its May launch. The payout, calculated at about 3.12 dollars for every 1 dollar of revenue up to the cap, follows a legal ruling that reinstated Unknown Worlds’ leadership. Early figures show rapid sales (2 million in 12 hours; 4+ million by May 20) with Steam leading and 2.4 million Game Pass players in the first week, underscoring strong initial performance.
A Delaware court ordered Krafton to restore control of Unknown Worlds to its leadership after Krafton attempted to oust the studio’s executives using a ChatGPT-guided plan to avoid paying an earnout of up to $250 million tied to Subnautica 2; the judge rejected Krafton’s dismissal justification, extended the earnout period, and returned governance to Unknown Worlds’ CEO Ted Gill while the dispute continues.
A Delaware judge ruled Krafton breached its contract with Unknown Worlds in the Subnautica 2 dispute after firing the studio’s co-founders and attempting a covert takeover. Court documents show Krafton CEO Changhan Kim consulted ChatGPT for an 'earnout takeover strategy' and a 'no-deal' plan, including messaging to fans and actions to seize Subnautica 2 on Steam. The AI-guided guidance largely shaped Krafton’s moves, which the court deemed illegal, and the judge extended the $250 million earnout period to September 15, 2026, reinstated the co-founders and Unknown Worlds’ CEO Ted Gill, and limited Krafton’s interference with the game’s early access launch.
A court ruled Krafton must reinstate Unknown Worlds’ CEO Ted Gill and the fired developers with full operating authority over Unknown Worlds and Subnautica 2’s Early Access, declare the board resolution ineffective, and extend the $250 million bonus payout window, potentially restoring eligibility for the earnout as the dispute proceeds.
Josh Harris's $6.05 billion deal to purchase the Washington Commanders from Daniel Snyder includes an "earnout," a structure that would provide Snyder with a deferred payment of an amount contingent on the franchise reaching specified financial benchmarks. The earnout represents a relatively small but perhaps meaningful portion of the overall sale price. Its inclusion in the deal explains, in part, why people familiar with the deliberations of the NFL finance committee last week described the sale agreement between Harris and Snyder as unusually complex.