Join gaming leaders online at GamesBeat Summit Next this upcoming November 9-10. Learn more about what comes next.
Kixeye shareholders have filed a lawsuit against Stillfront Group over $30 million in a disputed earnout payment related to its acquisition.
Fortis Advisors, a seller representative acting on behalf of Kixeye’s shareholders, filed the lawsuit today in Delaware’s Chancery Court. In it, Kixeye alleges that Stillfront deliberately breached a merger agreement over a $30 million “earnout,” or a bonus to be paid if Kixeye hit certain milestones.
We’ve asked Stillfront for a comment. In June 2019, Stillfront bought Kixeye for $90 million in an agreement that had an earnout for $30 million based on Kixeye’s expected financial performance for 2019.
Kixeye made popular real-time strategy games for mobile devices and PCs. The titles included games such as Rogue Assault, Battle Pirates, War Commander, and Vega Conflict.
Webinar
Three top investment pros open up about what it takes to get your video game funded.
Fortis accused Stillfront of doing some creative accounting that made Kixeye’s results look worse than they actually were in an allegedly bad faith attempt to evade the earnout payment.
GamesBeat
GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
- Newsletters, such as DeanBeat
- The wonderful, educational, and fun speakers at our events
- Networking opportunities
- Special members-only interviews, chats, and "open office" events with GamesBeat staff
- Chatting with community members, GamesBeat staff, and other guests in our Discord
- And maybe even a fun prize or two
- Introductions to like-minded parties
