Divestiture of OFM Studios
Stillfront Group announced the sale of OFM Studios, a German sports game developer, to its founder via a management buyout valued at €2.1m. The transaction, completed in May, follows the company's acquisition of a 51% stake in OFM Studios in 2017 for $735,000. This move is part of the company's strategy to streamline operations and focus on core franchises.
Resolution of Gameberry Dispute
Stillfront reached an agreement with Gameberry Labs to resolve outstanding payment obligations under an existing settlement related to Ludo Games and ancillary titles. The one-time payment of $26.5m from Gameberry to Moonfrog will replace ongoing obligations that would have lasted until 2030. This settlement supports the company's efforts to improve revenue quality.
Financial Impact
The proceeds from these transactions will support Stillfront's deleveraging initiatives. The combined impact of the settlement and divestiture is expected to reduce net revenue in the 'Other Games' segment by approximately SEK 110m ($11.7m) over the next 12 months. Overall, the moves have generated around $28.6m in proceeds.