Atari entered into an agreement to acquire a controlling stake in Thunderful Group, the publisher of the SteamWorld series, among other franchises, with a massive investment, while the Swedish company continues its restructuring process, which is sadly leading to layoffs.
In today's announcement, Atari confirmed it is investing 50 million SEK, around €4.5 million, in Thunderful through a directed share issue. Once finalized, this investment will give Atari ownership of roughly 82.6% of Thunderful, effectively making it the company’s new owner. This agreement, however, still requires approval from Thunderful's shareholders with a vote that will be taken during a meeting scheduled to be held around August 28.
Besides announcing the new agreement with Atari, Thunderful Group announced today that a restructuring of the company's operations has begun to reduce the cost base with the aim of improving operating cash flow. This decision was made after a strategic review highlighted that the company needs to adjust its costs to achieve profitability even at lower revenue levels. Unfortunately, this restructuring is leading to layoffs within game development studios and publishing business, continuing a trend that shows no sign of slowing down. Patrick Svensk, Chairman of Thunderful, commented on the ongoing restructuring, which is expected to continue even after Atari acquires the company, saying: "It is unfortunate to have to implement further operational measures that affect some of our colleagues. At the same time, I am convinced that this is the right path for Thunderful to create an efficient organization within the publishing business where our announced release pipeline remains intact."
Atari's proposed acquisition of Thunderful Group seems to indicate a change of strategy at the publisher, which has mostly focused on a retro-focused strategy with the acquisition of studios like Digital Eclipse and Nightdive Studios. As such, it will be very interesting to see what's in store for the future of one of gaming's better-known companies.
About the author: Francesco De Meo has been covering video games and technology since 2012, starting his career at small outlets like Gamersyndrome and GeekSnack. After joining Wccftech gaming section in 2015, he quickly expanded his video gaming coverage with in-depth reporting, interviews with iconic industry figures such as Grasshopper Manufacture founder and No More Heroes creator Goichi "Suda51" Suda, Resident Evil series creator Shinji Mikami, Team NINJA's president and Nioh series director Fumihiko Yasuda, and Silent Hill creator Keiichiro Toyama, reviews and on-the-ground coverage of major industry events such as Gamescom and E3. When he's not reporting or reviewing, Francesco can be found playing the genres he loves most, spending time with his six cats, reading, writing music, playing guitar and drumming for his progressive rock band.
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