Could CD Projekt RED be Facing a Possible Hostile Takeover?
News out of Poland a couple days ago may indicate that CD Projekt RED, best known for The Witcher 3: Wild Hunt and the upcoming Cyberpunk 2077, may be facing a hostile takeover. The studio has called a general meeting of shareholders scheduled for November 29 where one of the biggest issues on the table is a vote on whether or not to allow the company to purchase back part of its own share for 250 million PLN (Polish Zloty). This is in addition to votes on whether or not to merge CD Projekt Brands (Witcher/Cyberpunk) and a possible change of the company’s statute.
Over on NeoGAF, user boskee was able to clarify the importance of the first and the third key issues regarding the possibility of a takeover saying, “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 of the remaining shares for a set price and exceeds 50% of the total vote“.
Seeing as CD Projekt RED would very likely be opposed to any other company swooping in and taking control they would most certainly look to keep themselves protected by rebuying the shares themselves.
Michal Skiba, an analyst for Ipopema Securities spoke to the Polish publication Rp saying, “It seems that the proposed changes in the Articles of Association are arising from the desire to protect themselves against hostile takeovers and loss of control over the company.”
Back in September 2015, CD Projekt RED Chief Executive Adam Kicinski was quoted strongly denying the rumors of a possible takeover from publishing giant Electronic Arts. Rumors had surfaced and Kicinski responded saying, “Usually we don’t comment on rumors, but it’s time to deny the one about takeover because it spread too far. In the name of the board, I would like to state: No, we are not in any talks about the sale of CD Projekt RED or GOG. Also, the document verifying the identity/credentials of the source is not real.”
Well, it looks like perhaps the situation has changed and that Cd Projekt RED is in survival mode. As one of the more respected developers and publishers in gaming today we hope that whatever the outcome it’s in their favor.