Shareholders of CD Projekt RED demanded to dismiss the heads of the Polish studio. Bloomberg reports.
No confidence in the company’s CEO Adam Kicinski and his deputy Marcin Iwinski was expressed by the British investment company Abri Advisors. In a letter to the board of directors of CD Projekt RED, senior executives at the firm are expressing “extreme alarm” over the events that have taken place in the past 12 months. Abri Advisors management demands the immediate resignation of Kichinski and Ivinski – otherwise investors will demand replacement of the supervisory board.
“I don’t think you could have deliberately tried to make as many mistakes as you did,” said Jeffrey Tirman, chief executive of Abri Advisors. According to Tyrman, he is shocked by what is happening in the company of the creators of Cyberpunk 2077. First of all, investors are unhappy with the failure caused by the unsuccessful launch of the game on the market, and the decline in the capitalization of CD Projekt RED.
The management of the British firm did not disclose what share of the Polish company is owned by them. Reporters noted that it is extremely difficult to remove the management of CD Projekt RED, as this requires a decision by the overwhelming majority of representatives of the board of directors. In addition, the current directors of the studio – Adam Kicinski and his brother Michal – jointly own at least 34 percent of the company’s shares. According to Bloomberg, the largest external shareholder of CD Projekt RED is the Polish pension fund NN Group NV with a 4.2 percent stake.
“I would like the company to put forward a public plan for how it intends to address all the shortcomings and how it plans from a strategic point of view to restore its brand and the trust that has been lost among its customers and shareholders,” concluded Jeffrey Tyrman.
At the end of May became knownthat four class actions against CD Projekt RED were merged into one. At least two of the four lawsuits came from studio investors who are unhappy with the state of affairs in the company.