Hostile Takeover Rumors of Witcher 3 Developer CD Projekt Red Arise
CD Projekt Red, the developers of the Witcher series of games, know all about mounting a defense against hordes of unwanted opponents. Now it appears they are preparing a defense against one of the world’s toughest opponents, corporate hostile takeover.
For those who have not spent time learning the alchemy of business law, a hostile takeover is when an unwanted attempt to obtain controlling interest of a company is made by an outside party. There are different strategies that both those attempting to acquire and those seeking to defend from acquisition can employ, but these tactics on both sides require a great deal of planning, communication and coordination among the individuals involved to be successful.
A Polish document from CD Projekt Red was posted and translated recently by Neogaf user boskee which details an upcoming shareholders meeting on November 29th. Among the topics to be discussed and voted upon include whether or not the company will allow its own shares to be purchased by the company for $250 million PLN (approx. $64 million), whether the holding company will merge with CD Projekt Brands (the subsidiary that holds the Witcher and Cyberpunk game trademarks) and whether or not to change the company’s statute. This last one relates to a hostile takeover in that it would restrict shareholders than own over 20% of the company’s shares from voting on key decisions in the company. The sole case for this to then be reversed would be if the remaining shares would be purchased by the shareholders at a set price, which would then surpass 50% of the shares.
It could be surmised that many fans of CD Projekt Red would prefer for the company to not be acquired and beholden to a corporate owner, as it could affect the creative decisions the company is often highly regarded for due to their relatively independent nature. Much like Geralt of Rivia, their rogue ways have made them who they are. Based on the proposed defenses in the document, it sounds like Projekt Red is as favorable towards independence as their fans are. The company gave this official response towards the rumors of a hostile takeover:
As for the rumor, it emerged after the Board suggested introducing a voting cap during the upcoming shareholder meeting. However, the proposal is not a reaction to any current events affecting CD PROJEKT. Rather, it is meant as insurance against future hypothetical scenarios which may never materialize.
We wish to safeguard the interests of minority shareholders in a hypothetical case where a major shareholder emerges professing a business and strategic vision which conflicts with ours.
While the company does not seem to be currently facing combat with hostile investors, just like their RPG series’ hero, they are definitely getting their skill tree built for unknown enemies awaiting at tomorrow’s dawn. What say you all to this news? Do you think Projekt Red should remain independent? Are you looking forward to their upcoming Gwent and Cyberpunk 2077 games? Let us know in the comments below!
In other Witcher news, have you seen the newly announced Witcher Funko Pops or this impressive Ciri cosplay made by a fan? Read about all these stories and future Witcher news here on Don’t Feed the Gamers!
Cory Lara1241 Posts
A royally radical and totally tubular 90s kid, Cory has a passion for all things nerdy, particularly gaming and nostalgia. While an accountant by day, he strives to be as creative and humorous as possible in his free time, be it here writing on Don't Feed the Gamers, or making dumb satirical posts on his Twitter, Youtube, Facebook and Instagram accounts.