Bloomberg: Annapurna Interactive staff mass resign following failed spinoff negotiations

gematsu.com:

The entire staff of Annapurna Interactive resigned this month following a dispute with owner Megan Ellison, according to a Bloomberg report by Jason Schreier citing people familiar with the situation.

Annapurna Interactive president Nathan Gary and his team were reportedly negotiating with Ellison to spin-off the division, which publishes video games, into an independent entity. But when Ellison pulled out of the negotiations, Gary and other executives resigned, followed by around two dozen staff.

A spokesperson for Annapurna Interactive confirmed to Bloomberg that it explored spinning off the company into an independent entity, but the two parties failed to reach an agreement, leading to the resignations.

“Our top priority is continuing to support our developer and publishing partners during this transition,” Ellison told Bloomberg in a statement. “We’re committed to not only our existing slate of games but also expanding our presence in the interactive space as we continue to look for opportunities to take a more integrated approach to linear and interactive storytelling across film and TV, gaming, and theater.”

Developers who have publishing contracts with Annapurna Interactive have reportedly scrambled to find new points of contacts to figure out whether the company will continue to fund and publish their games following the mass resignations.

The Annapurna Interactive spokesperson told Bloomberg that all existing games and projects will remain under the company, and newly appointed president Hector Sanchez has reportedly told developers that it will honor existing contracts and replace the departed staff.

It should be noted that Annapurna Interactive parent company Annapurna Pictures, and not Annapurna Interactive itself, recently signed a deal with Remedy Entertainment to co-produce and co-finance the development of Control 2, as well as develop and produce the Alan Wake and Control franchises for film, television, and other audiovisual formats.