Stillfront Sells OFM Studios and Settles Gameberry Payment for $26.5M
Stillfront has divested OFM Studios, the developer behind Online Football Manager, back to its founder through a management buyout valued at €2.1 million ($2.4 million). This decision is part of the company's ongoing strategic review aimed at focusing on its key franchises. Stillfront initially acquired a 51% stake in the German developer in 2017 for $735,000 (€639,000). The management buyout was finalized in May.
In addition, Stillfront reached an agreement with Gameberry Labs to settle all outstanding payment obligations resulting from an existing settlement related to Ludo Games and its associated titles. Instead of continuing these obligations until 2030, Gameberry has made a one-time upfront payment of $26.5 million to Moonfrog, settling all current and future payment duties.
Why it matters
These strategic moves are intended to simplify Stillfront's portfolio and enhance the quality of its revenue streams. The combined financial impact of the divestment and settlement is projected to decrease net revenue in the 'Other games' category by approximately SEK 110 million ($11.7 million) over the next year. Overall, these transactions have generated around $28.6 million for the company. Alexis Bonte, president and CEO of Stillfront Group, emphasized that these actions support the company's ambition to streamline operations and thanked the OFM team for their collaboration.
Original source
PocketGamer.biz
