Key Takeaways
1. Krafton acquired Unknown Worlds Entertainment (UWE) for $500 million, with an additional $250 million bonus contingent on sales targets for Subnautica 2.
2. Following the acquisition, Krafton fired UWE’s founders and postponed Subnautica 2’s release to 2026, which helped them avoid paying the bonus.
3. UWE founders allege that Krafton sought legal advice from ChatGPT to find ways to evade the bonus payment and planned a “Project X” to take control of UWE.
4. Internal communications revealed Krafton discussing renegotiation offers and considering a takeover instead of fulfilling the original agreement.
5. Both the lawsuit from UWE’s founders and Krafton’s counter-suit regarding mismanagement and theft are ongoing, while Subnautica 2’s release date remains set for early 2026.
Back in July, court papers released by Charlie Cleveland, one of the three co-founders of Unknown Worlds Entertainment (UWE), showed some fascinating details about the lawsuit against the South Korean publishing giant, Krafton. The documents contained shocking accusations regarding the publisher’s conduct during the time leading up to the lawsuit. The lawsuit claimed, “Krafton has tossed its promises aside for the sake of profit, taking the game from the hands of its creators and community.”
Acquisition and Bonuses
When Krafton purchased UWE for a whopping $500 million in October 2021, they also agreed to pay the founders an extra $250 million if certain sales targets were achieved, particularly for Subnautica 2. In late 2024, UWE announced the early access release date for Subnautica 2 would be in 2025. However, just six months later, Krafton fired the founders and soon after postponed the launch to 2026, claiming that various aspects of the game required more work from the remaining UWE and Krafton teams. This delay also meant they could avoid paying the previously arranged bonus.
Legal Tactics and Internal Discussions
Interestingly, after announcing a shift toward becoming an AI-focused company, the founders allege in their new filing that Krafton consulted ChatGPT for legal strategies to dodge the bonus payment. The filing stated, “Krafton dismissed the Founders and took control of Unknown Worlds to escape the earnout.” It continued, “Documents show that Krafton was exploring ways to ‘cancel the earn-out’ and that their secret ‘Project X’ aimed to either negotiate a ‘Deal’ regarding the earnout or execute a ‘Take over.’ When the Founders refused to meet Krafton’s terms about the earnout, Krafton deemed a ‘take over’ the easier option.”
Renegotiation Offers and Current Status
Leaked internal communications reveal Krafton’s discussions regarding offers to renegotiate payments. Richard (Sang-Han) Yoon’s texts were quoted, saying, “I had a call earlier. They’re asking for 75 million for themselves and 40 million for their team members … They insist on negotiating the team packages together,” Yoon added. “Right now, we’re considering a bucket of around 10 million for the team,” he concluded. “It might just be simpler to take over.”
Chang Han Kim replied, “Set a date and send a letter if you need to send it early.”
The release date for Subnautica 2 remains set for early 2026, even as both the founders’ lawsuit and Krafton’s counter-suit—accusing mismanagement, theft of files, and sharing confidential information, among other issues—are still unresolved.
Krafton has since responded to Eurogamer, stating:
“This assertion is merely a diversion from their own attempts to destroy evidence, such as Charlie reminding other Key Employees (Max and Ted) to erase anything ‘incriminating’ from their ChatGPT accounts. Contrary to Fortis’s claims, Krafton proposed extending the earnout period if the Key Employees returned to their contractually obligated positions.”
Source:
Link
Leave a Reply