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- Azle, TX
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There are rumors that are reporting that The Witcher 3 dev CD Project RED is facing some funding issues on their next title, Cyberpunk 2077, and as such is seeking funding through outside funding to complete the project. The fact of the matter is that any whiff of outside funding would come attached with shares in the developer. With those shares, it could spell the possibility of hostile takeover.
As such, the polish website is reporting that CD Project RED is tightening share holder rights for their next general meeting. This is my words, but it appears that the measure is being taken to prevent a hostile takeover of the company.
The measure is as follows, according to a google translate of the page in english, the company is wanting to restrict voter rights on any given measure that exceeds 20% of the vote. That measure is lifted when there is a fair offer or the vote reaches 50%.
The measure, explains management, is a safeguard in case a major investor emerges and does not offer a fair price for the company. After the success of The Witcher 3, there is little doubt that investors will come calling to takeover the company.
"It seems that the proposed changes in the Articles of Association arising from the desire to protect themselves against hostile takeovers and loss of control over the company" explains Michal Skiba, an analyst Ipopema Securities. EGM will convene on November 29th and will decide then on buying the shares. "He also is part of this strategy, as it will allow the members of the board to strengthen its position in the company, unless they decide to sell their shares," Skiba added.
Source (Google Translate)
Source (in Polish)
As such, the polish website is reporting that CD Project RED is tightening share holder rights for their next general meeting. This is my words, but it appears that the measure is being taken to prevent a hostile takeover of the company.
The measure is as follows, according to a google translate of the page in english, the company is wanting to restrict voter rights on any given measure that exceeds 20% of the vote. That measure is lifted when there is a fair offer or the vote reaches 50%.
The measure, explains management, is a safeguard in case a major investor emerges and does not offer a fair price for the company. After the success of The Witcher 3, there is little doubt that investors will come calling to takeover the company.
"It seems that the proposed changes in the Articles of Association arising from the desire to protect themselves against hostile takeovers and loss of control over the company" explains Michal Skiba, an analyst Ipopema Securities. EGM will convene on November 29th and will decide then on buying the shares. "He also is part of this strategy, as it will allow the members of the board to strengthen its position in the company, unless they decide to sell their shares," Skiba added.
Source (Google Translate)
Source (in Polish)
