- Krafton has agreed to pay bonuses to the entire staff of subsidiary Unknown Worlds Entertainment after reaching a legal settlement with the studio’s CEO and co-founders.
- In conjunction with the settlement, Unknown Worlds CEO Ted Gill has stepped down, stating that "new leadership is the best way for the studio to move forward."
- Krafton will pay all previously promised bonuses to employees as part of the settlement, ensuring that everyone at the studio will receive a payout, even those who joined more recently.
- The new legal settlement means that all current employees of Unknown Worlds will receive a large bonus due to Subnautica 2’s massive success, paid in three annual installments.
- Krafton confirmed the settlement, stating its focus is now on the future of Subnautica 2, which Unknown Worlds will continue to develop.
- Krafton acquired Unknown Worlds for $500 million back in 2021.
- Gill and the co-founders filed a lawsuit against Krafton, claiming they were ousted to avoid paying a massive $250 million bonus.
- A judge ordered Krafton to reinstate Gill as CEO, giving him control back over *Subnautica 2*’s launch.
Krafton Inc. has reached a legal settlement with Unknown Worlds Entertainment, resulting in the payment of bonuses to all employees after CEO Ted Gill stepped down. This settlement follows a tumultuous period marked by a lawsuit from Gill and co-founders against Krafton, alleging wrongful termination to avoid a $250 million bonus payout.14567891011
Gill stated, "New leadership is the best way for the studio to move forward," emphasizing the need for change. The settlement ensures that all staff, including recent hires, will receive bonuses in three annual installments, significantly more than previously agreed upon under the acquisition terms. Krafton had acquired Unknown Worlds for $500 million in 2021.
The legal battle stemmed from accusations that Krafton delayed the launch of *Subnautica 2* to sidestep the bonus payment. A judge had previously ordered Gill's reinstatement, allowing him to regain control over the game's launch. Krafton confirmed the settlement, stating, "Krafton, Inc., Unknown Worlds Entertainment and Ted Gill, Charlie Cleveland, and Max McGuire have reached a mutual settlement and agreed to dismiss all pending legal proceedings." The focus now shifts to the future of *Subnautica 2*, which Unknown Worlds will continue to develop.
Krafton’s CEO, Changhan Kim, expressed feeling "taken advantage of" during the negotiations, which included consulting with ChatGPT for legal advice. The court ruling highlighted the complexities of the case, with Krafton warned that the bonuses would still need to be paid even in the event of a dismissal with cause.
“Krafton has reached a legal settlement that ensures all employees of Unknown Worlds will receive bonuses following the success of Subnautica 2. CEO Ted Gill's resignation marks a significant leadership change as the studio moves forward.”
Kotaku
