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Delaware Court Reinstates Unknown Worlds CEO, Extends Subnautica 2 Earnout Window

The decision restores the bargained-for control rights to address a breach of the acquisition agreement.

Overview

  • Krafton must immediately return Ted Gill to the CEO role with full operational authority, including control over Subnautica 2’s Early Access timing and access to the Steam platform.
  • The earnout testing period tied to up to $250 million is extended to September 15, 2026, with a contractual option to push it to March 15, 2027.
  • Vice Chancellor Lori W. Will found Krafton breached the deal by firing key leaders without valid cause and relying on pretext, citing internal “Project X” efforts and consultations with ChatGPT.
  • The July 1, 2025 board resolution was declared ineffective insofar as it infringed Gill’s control rights, while co-founders Charlie Cleveland and Max McGuire were not reinstated.
  • Phase Two of the case will address damages and whether Krafton impaired the earnout, as Krafton says it respectfully disagrees with the ruling and is evaluating its options.