Starbreeze is contractually bound to pay 505 Games 33% of Payday 3's future revenues, new earnings reports confirm.
While scouting the 2020 earnings reports for Digital Bros, 505 Games' parent company, I noticed something: 505 has a lot of interest and investment into Payday developer Starbreeze. The two companies go way back. 505 Games published Payday 2 way back in 2013, and three years later in 2016, it sold the Payday franchise's publishing rights back to Starbreeze.
The terms of this deal are interesting. According to the report, Starbreeze has promised to deliver 33% of Payday 3's future revenues to 505 Games as part of the transaction. Payday 3 only just recently found a publisher; Payday 3 will come out in 2023 on next-gen consoles and PC thanks to a publishing deal with Embracer Group's Koch Media label (Deep Silver).
In May 2016, the Group sold back its rights of PAYDAY2 to Starbreeze against a payment of USD 30 million and an earn out of USD 40 million as 33% of the net revenues from the future video game PAYDAY3
Payday 2 is still generating money for 505 Games, and made the company 2.28 million Euros in 2020.
Despite the strong investments into Starbreeze that account for nearly 12% of total company shares and 30% of voting rights, 505 Games and parent company Digital Bros. say they don't have any real sway over Starbreeze.
At December 31st, 2020, also as a result of minor purchases, the Group holds 61,758,625 Starbreeze STAR A shares and 24,890,329 Starbreeze STAR B shares representing 11.96% of share capital and 28.57% of voting rights.
Despite the continuing contractual relations and the equity interest held in the Swedish company, the Group does not believe it has any influence over Starbreeze.
- > NEXT STORY: Death Stranding PC port is a success, made over $27 million in 2020
- < PREVIOUS STORY: Check out 11 minutes of Mass Effect remaster vs original gameplay