Atari to Acquire Majority Stake in Struggling Thunderful Group
Swedish game holding company Thunderful Group has been facing significant financial challenges, leading to multiple restructuring efforts throughout 2024. To help avert further decline, Atari has announced its intent to acquire approximately 82% of Thunderful's shares for 50 million Swedish Kronor (approximately $5.2 million USD).
News of the acquisition follows Thunderful's announcement of a new restructuring process aimed at reducing costs and improving cash flow, which has remained negative. The company cited several key reasons for its current predicament:
- Weak Sales Performance: The recent release of Lost in Random: The Eternal Die performed poorly, highlighting the publishing division's over-reliance on single game releases.
- Negative Cash Flow: As of June 30, the company reported a net debt of 85 million SEK ($8.8 million USD) and limited liquidity of 32 million SEK ($3.3 million USD).
- Declining Revenue: Second-quarter revenue dropped to 38 million SEK ($3.9 million USD), down from 58 million SEK ($6 million USD) in the same period last year.
Restructuring and Leadership Changes Ahead
To return to profitability, even with reduced revenue, Thunderful plans to cut staff across both its development studios and publishing arm. These measures are expected to save between 6-8 million SEK ($620,000-$800,000 USD) in the second half of 2025 and 40-45 million SEK ($4-$4.6 million USD) over the course of 2026. Importantly, these changes will not impact any previously announced projects.
The restructuring will also bring a change in leadership. Current Thunderful Group CEO Martin Walfisz is set to step down from his position by December 31, 2025.
Atari's Strategic Investment
Following these internal announcements, Atari confirmed its plan to acquire a controlling stake in Thunderful Group. Thunderful's portfolio includes five development studios, a service division, and over 20 intellectual properties, such as the popular SteamWorld series, Islanders, Lost in Random, and Vampire's Fall.
Atari CEO Wade Rosen stated that this acquisition will expand Atari's publishing and development capabilities within the European market. Rosen expressed confidence in Thunderful's return to profitable growth, citing their reputation for critically acclaimed games and the dedication of their teams, which will also contribute to Atari's European expansion. The acquisition still requires approval from Thunderful's shareholders, but both the board of directors and the two largest current shareholders have unanimously endorsed the decision.
Expert Weighs In
Serkan Toto, founder of consulting agency Kantan Games, commented that Atari's move is likely to save the Swedish holding company from financial collapse. He pointed out the dramatic drop in Thunderful's stock value, which plummeted from 97.8 SEK per share in 2021 to just 0.30 SEK today. Toto advised investors to "be extremely careful and conduct thorough due diligence before investing in small or medium-sized European studios, especially in current market conditions."
This acquisition marks a significant moment for both companies. For Thunderful, it offers a lifeline and a path to stability under new ownership, potentially allowing its valuable IPs like SteamWorld to thrive. For Atari, it represents a strategic expansion into European development and publishing, broadening its reach and portfolio in the competitive gaming industry.
Post a Comment