The Fall of Starbreeze

[Infinitron]

https://www.starbreeze.com/2020/12/starbreeze-completes-payment-to-majority-of-creditors/

Starbreeze completes payment to majority of creditors

Starbreeze AB (publ) (“Starbreeze”) completed payment to parts of the creditors’ collective during the fourth quarter, in accordance with the reorganization plan and the public composition proposal established by the Stockholm District Court on December 6, 2019.

Starbreeze has through these payments settled all debts categorized as Supplier creditors and Small supplier creditors who were included in the reorganization plan. After this debt settlement, only part of the debt to Nordea and debt related to Convertible bond and related refinancing costs remain.

Starbreeze creditors have been divided into four groups: (i) Nordea, (ii) Smilegate, (iii) Supplier creditors and (iv) Smaller supplier creditors. All creditors shall receive full payment for their debts within the framework of the reorganization plan, but within different time depending on the group to which the creditor belongs. The payments that now been made have resulted in all Supplier creditors and Small supplier creditors receiving a full refund and that the debt to Nordea has been amortized by approximately 50%. As previously communicated, the payments have been made with proceeds from the rights issue and to some extent existing cash.

Starbreeze will in the next few days send letters to the creditors who have chosen to receive a refund within a fixed period of 1 year after the settlement, with information that payment will be received shortly.

 

[Infinitron]

https://www.eurogamer.net/articles/...enge-as-hunt-for-payday-3-publisher-continues

Starbreeze "thirsting for revenge" as hunt for Payday 3 publisher continues
Money talks.

Starbreeze has said it is "thirsting for revenge" as its hunt for a Payday 3 publisher continues.

The Swedish company reported its 2020 financial results, which show a loss before tax of SEK 130.5m (£11.3m), compared to a loss of SEK 452.4m (£39.3m) in 2019.

The losses continue, but 2020 was an improved year for Starbreeze. It paid off a large proportion of its debts, and there is improvement from co-op shooter Payday 2. Starbreeze said by late December, Payday 2 had become the biggest game community on Steam, with 7.1 million members.

The fourth chapter of Payday 2 Silk Road, which included a free core update and three DLCs, came out in November 2020. Net sales of Payday 2 increased on Steam by 37 per cent compared to 2019. Net sales of DLC increased 69 per cent. Console revenues grew by 61 per cent. The developers are working on a new season for Payday 2, the first part of which launches this quarter.

Acting CEO Tobias Sjögren said Starbreeze is now in a position to continue development of Payday 3.

"Starbreeze is a much stronger company today than it was one year ago. We are hugely confident, thirsting for revenge and thrilled to be able to focus to the max on developing our IP with Payday front and center."

Starbreeze exited reconstruction in December 2019 after a tumultuous time sparked by the disastrous launch of Overkill's The Walking Dead on Steam. The game flopped, causing severe financial issues and the acrimonious exit of boss Bo Andersson. For more, check out our in-depth feature, The fall of Starbreeze.

But after a reorganisation, layoffs, the selling off of various publishing rights and a focus on Payday 2, it seems Starbreeze is starting to sort itself out.

However, while Starbreeze is in a stronger position now than it has been, its directors issued a stark warning that suggests that it'll have to sign a publisher for Payday 3 to continue to operate till the end of 2021.

"Without additional financing, liquidity injections from divestitures or distribution agreements for Payday 3, the company could experience a liquidity shortfall in the fourth quarter of 2021," reads the financial report.

"This entails risk that the company will not have sufficient secured funds to guarantee continued operations for the next 12 months."

However, the company said it's "confident" of doing a deal.

"In the opinion of the board of directors, Starbreeze will be able to close a publishing agreement for the company's projects," it said.

 

[Infinitron]

Bailed out by Koch Media/Embracer: https://www.gamespress.com/Starbreeze-enters-co-publishing-agreement-with-Koch-Media-for-2023-PAY

Starbreeze enters co-publishing agreement with Koch Media for 2023 PAYDAY 3 launch
Starbreeze enters co-publishing agreement with Koch Media for 2023 PAYDAY 3 launch

Starbreeze (“Starbreeze”) today announced a global co-publishing deal with the leading European publishing partner Koch Media GmbH (“Koch Media”), for the highly anticipated PAYDAY 3. The agreement provides for an estimated total investment exceeding 50 MEUR for both development and marketing of PAYDAY 3 including more than 18 months of post-launch “Games as a service”, meaning continuous development, release of new content and marketing. With the co-publishing deal, the PAYDAY 3 project is fully financed. PAYDAY 3 is expected to launch during 2023.

Starbreeze remains the owner of the PAYDAY IP – one of the most successful game franchises in the world with more than 28 million installed base games to date – and will be responsible for the continued development of PAYDAY 3. The game marks the next major product for Starbreeze and will enable the company to further grow the PAYDAY IP-portfolio.

“We are excited to announce this exclusive long-term PAYDAY 3 co-publishing deal with Koch Media who shares our passion for the PAYDAY franchise and the “Games as a service” model. In addition to securing the continued development, this deal secures global publishing of PAYDAY 3 as well as the marketing efforts through the entire game life cycle. We now have a strong foundation for a successful launch of PAYDAY 3”, said Tobias Sjögren, Acting CEO of Starbreeze.

With over 20 years of experience, Koch Media has positioned itself as a premier publisher of digital entertainment. Using its extensive global marketing and communications experience and networks, Koch Media will be responsible for publishing and marketing activities for PAYDAY 3 around the world.

“We are delighted to welcome Starbreeze as a new partner for our global publishing business. PAYDAY 3 is shaping up to be an incredible game. Based on what we’ve seen already, PAYDAY 3 is going to take the franchise to new heights and will delight PAYDAY fans as well as new audiences alike with innovative multiplayer gameplay”, said Klemens Kundratitz, CEO, Koch Media Group.

PAYDAY 3 will be launched in a coordinated release on PC and consoles in 2023, with additional content and functionalities planned for long beyond the original release date.

 

[Infinitron]

So much for that: https://www.gamesindustry.biz/artic...eeze-cfo-acquitted-of-insider-trading-charges

Former Starbreeze CFO acquitted of insider trading charges
Sebastian Ahlskog no longer has to pay fine after Swedish Court of Appeal orders original judgement be amended

Starbreeze's former chief financial officer Sebastian Ahlskog has been acquitted of all charges for insider trading.

He was convicted in 2020 following an investigation into the sale of his shares ahead of Starbreeze's reconstruction period, a special measure for Swedish businesses on the brink of insolvency.

Ahlskog stepped down as CFO in October 2018, selling his shares a month later to raise over SEK 700,000 ($72,000 at the time, but $81,000 today). In December, it emerged that Starbreeze was facing insolvency.

However, court documents shared with GamesIndustry.biz and authenticated by the Swedish Court of Appeal show that he was acquitted earlier this year.

The court confirmed to us that charges of insider trading were dismissed entirely on June 11th, and the original judgement by the district court would be amended.

The prosecution was given until September 7 to appeal against the court's decision, but has not done so.

Ahlskog also no longer has to pay a fee to the crime victims fund. It was previously reported he was fined SEK 40,000 ($4,640, but at the time $4,142).

The Court of Appeal does not believe Ahlskog had insider information that Starbreeze would fail to find external funding as it faced insolvency. At the time he sold his shares, the company was still in discussions with banks and other parties.

It is also noted that Starbreeze was never declared bankrupt.

After a year in reconstruction, the Payday studio emerged with a plan to pay off its debts. By December 2020, it had paid off most of its creditors.

Ahlskog's conviction followed an investigation by the Swedish Economic Crime Authority, which involved a raid on the publisher's headquarters.

Former CEO Bo Andersson Klint was also under investigation, but was later cleared of all charges.

Earlier this year, we spoke to Starbreeze's new CEO Tobias Sjögren about the company's continued recovery, including a €50 million publishing deal for Payday 3.