Earlier this year, video game media made everyone aware that this industry isn’t just about selling games. No, there’s backroom deals, corruption, and of course major moves that may be construed as hostile. This information had come as a result of Vivendi’s continual attempt to take over Ubisoft, and that tug-of-war still wages today.
A lot of people assumed Vivendi taking over Ubisoft would be a good thing. Gamers began to fantasize about a world where in-game protagonists would no longer have to climb towers in order to reveal more pieces of map, but the reality of the situation is that if the company taking things over isn’t competent, the game developer could eventually cease to exist. Vivendi has a track record of soaking up game industry assets, mismanaging their funds, and then allowing those assets to go belly up. That’s not a good thing for anyone. Even if you loathe a company like Ubisoft, we need more competition in this industry, not less.
And one such contender has been rising over the years: CD Projekt RED. They gained a bit of notoriety with The Witcher and especially its sequel, but The Witcher 3 has propelled them to the next level. They’ve proven they can make games just as large and intricately detailed as anybody in the business – including Rockstar – and that they can do so with a fraction of the budget and staff members on hand. This has not only made the company financially successful, but their consumer friendly practices have also generated a lot of good will… and the industry as a whole has taken notice, with multiple offers having been made to acquire the company. They’ve all been turned down, of course, but CDPR are no longer a private company. They’re public, meaning there’s ways for companies to wedge themselves in if they play their cards right.
Well, it seems that CDPR have called for an emergency meeting. The gist is that they’re exploring the possibility of buying back around 60 million dollars’ worth of their own shares. I’m not an expert, so maybe this is just a case of the studio wanting to go back to their independent status. However, the urgency of this meeting and what it entails more than likely means they’re preparing to protect themselves against threat of a hostile takeover.
I’ll keep you posted as more information becomes available.
Other reports are now flooding online. Since the early details we broke on Byte-Size Impressions, Neogaf member ‘boskee’ has posted some additional details about the meeting, being held November 29th:
One – Vote on whether or not to allow the company to buy back part of its own shares for 250 million PLN ($64 million)
Two – Vote on whether to merge CD Projekt Brand (fully owned subsidiary that holds trademarks to the Witcher and Cyberpunk games) into the holding company
Three – Vote on the change of the company’s statute.
“Now, the 1st and the 3rd point seem to be the most interesting, particularly the last one. The proposed change will put restrictions on the voting ability of shareholders who exceed 20% of the ownership in the company. It will only be lifted if said shareholder makes a call to buy all the remaining shares for a set price and exceeds 50% of the total vote.
According to the company’s board, this is designed to protect the interest of all shareholders in case of a major investor who would try to acquire remaining shares without offering a ‘decent price’.”
Again, more details will be reported as they become available.