CD Projekt RED Denies Hostile Takeover Attempt Rumors

CD Projekt RED Denies Hostile Takeover Attempt Rumors

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The Witcher 3 developer CD Projekt RED is taking steps to protect itself in the future, even if there's no threat now.

Earlier this week, news popped up on NeoGAF that CD Projekt RED, developer of The Witcher series, was taking steps to protect itself from a hostile takeover. The news came from a translation of the agenda for an upcoming company shareholders' meeting, which includes a proposal to place a cap on the voting rights of certain shareholders.

This is a maneuver typically used to protect shareholders against a buyout, in which shareholders who own above a certain percentage (usually 20%, as in this case) of the company are unable to vote on certain issues, such as accepting or rejecting a takeover. Also mentioned as being included in the agenda is a proposal to authorize the company buying back some of its own shares for a whopping $64 million, a move that can also be used to help prevent a hostile takeover.

But there's no such takeover in the works, says CD Projekt RED. Speaking to WCCFtech, the company said that these measures are only intended "as insurance," and not in reaction to current events. The official statement reads,

"As for the rumor, it emerged after the Board suggested introducing a voting cap during the upcoming shareholder meeting. However, the proposal is not a reaction to any current events affecting CD PROJEKT. Rather, it is meant as insurance against future hypothetical scenarios which may never materialize. We wish to safeguard the interests of minority shareholders in a hypothetical case where a major shareholder emerges professing a business and strategic vision which conflicts with ours."

It's not surprising that CD Projekt RED is protecting itself. After all, the company has had success both as a developer and a publisher, as well as in the world of retail with its DRM-free GOG.com store.

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Glad they are taking these measures, i really wouldn't want to see another awesome studio devoured from the inside out until nothing but a hollow shell remains (RIP Bioware)

I imagine this is another company EA would love to buy up and then shut down, wouldn't they.

Arnoxthe1:
I imagine this is another company EA would love to buy up and then shut down, wouldn't they.

Oh yeah, CDPR is exactly the kind of company that EA would like to get their grubby hands on.

Steps to prevent before things happen usually help, good on them, would hate to see Activision or EA take them over.

Arnoxthe1:
I imagine this is another company EA would love to buy up and then shut down, wouldn't they.

Don't say their name! Hasn't fiction taught you that saying the name of the ultimate evil is the surest way to get its attention?!

chozo_hybrid:
Steps to prevent before things happen usually help, good on them, would hate to see Activision or EA take them over.

Ubisoft: No one told us.

OT; Smart of them to do this. Though I think 'smart' may be somewhat redundant. They did ditch DRM after all.

CD Project is the last company I want to see fall into the hands of a greedy company. It happened to Bioware, and it happened to beloved companies that we no longer even remember (or care for because they're hollowed out). Keep being awesome CD Project, don't let anyone take away your gift of crafting amazing games.

CD Projekt Red then went on further to say, 'Alright we told them, can we please have our children back'.

But that's good. CD Projekt are one of the few reliable big-name devs out there right now, them being able to keep doing their shit is preferable.

Huh, wasn't CD Projekt RED the developer for Witcher with CD Projekt (without the "RED" bit) as the publisher and the company responsible for gog.com?

 

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