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Krafton settles dispute with Unknown Worlds, CEO to depart after $250M legal saga
Key points
- Krafton to pay bonuses to all Unknown Worlds staff
- CEO Ted Gill will leave the studio
- Dispute involved removal of cofounders over potential bonuses
Settlement Details
Krafton and Unknown Worlds have reached a mutual settlement, ending legal proceedings that stemmed from the removal of studio cofounders and CEO over potential bonuses worth $250 million. Details of the settlement remain undisclosed, but Krafton confirmed the payment of bonuses to all staffers.
Bonuses will be disbursed in three yearly installments, expanding beyond those who were part of the studio at the time of Krafton's acquisition in 2021.
Background of the Dispute
The legal dispute began last year when Krafton forced out cofounders Charlie Cleveland and Max McGuire along with CEO Ted Gill. This action occurred as the studio was nearing financial goals tied to substantial bonuses. Following the executives' lawsuit, a judge reinstated Gill as CEO in March during a tumultuous period.
The game Subnautica 2 launched in early access in May, achieving significant sales with over four million copies sold within five days.
Leadership Change
Despite the settlement, Ted Gill has announced he will leave his position at Unknown Worlds. He expressed that parting ways was mutually agreed upon and indicated that new leadership would benefit the studio's future. This departure marks a significant shift in leadership amid ongoing development of Subnautica 2.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Krafton has settled its legal dispute with subsidiary Unknown Worlds Entertainment, which is developing Subnautica 2, by agreeing to pay bonuses to all staff. The settlement comes after a contentious year where Krafton removed studio cofounders and faced a lawsuit, leading to CEO Ted Gill's reinstatement in March.