TL;DRKrafton will pay bonuses to all Unknown Worlds staff after settling the $250 million Subnautica 2 earnout dispute. CEO Ted Gill is stepping down.
Krafton has agreed to pay bonuses to the entire staff of Unknown Worlds Entertainment, the studio behind Subnautica 2, after reaching a legal settlement with the company’s chief executive and co-founders. CEO Ted Gill told Bloomberg he is stepping down as part of the deal. “We mutually agreed to part ways,” Gill said.
The settlement ends a year of litigation that became one of the strangest corporate governance episodes in gaming history. Krafton bought Unknown Worlds in 2021 for $500 million, plus a $250 million earnout tied to financial targets. Last summer, Krafton fired Gill and co-founders Charlie Cleveland and Max McGuire, claiming they had neglected their duties.
The three executives sued, alleging Krafton had fired them and delayed Subnautica 2 specifically to avoid paying the bonus. A Delaware judge sided with the executives in March, ordering Krafton to reinstate Gill and extend the earnout period. In the ruling, the judge found that Krafton CEO Changhan Kim had consulted ChatGPT for advice on how to get out of paying the bonus.
