INSIDE INFORMATION:
The transaction is uniquely and attractively structured as a tri-party arrangement amongst Daybreak, Cold Iron and Toadman, EG7’s wholly owned co-development studio, and can be summarized as follows:
- Daybreak-Cold Iron Publishing Agreement
- Daybreak is acquiring the exclusive worldwide publishing rights to the
New Game from Cold Iron. - Over 2023 and 2024, Daybreak will be advancing approximately
USD 23 million to fund the development of theNew Game .
- Daybreak is acquiring the exclusive worldwide publishing rights to the
- Cold Iron-Toadman Co-development Agreement
- Cold Iron is hiring Toadman as its co-development partner for the
New Game . - The estimated contract value for Toadman is approximately
USD 8 million .
- Cold Iron is hiring Toadman as its co-development partner for the
- Unique and compelling transaction structure
- EG7´s net investment is expected to be approximately
USD 15 million , taking into account the co-development contract value for Toadman. - Appealing commercial potential with a favorable risk-reward balance in-line with previously communicated acceptable risk levels.
- Secures a sizable and highly profitable co-development contract for Toadman, which not only provides meaningful profitability, but also helps to build a solid foundation and the necessary track record for Toadman’s future.
- EG7´s net investment is expected to be approximately
Founded in 2015, Cold Iron is the independent studio behind Aliens: Fireteam Elite (AFE). Released in
This marks Daybreak’s first new product publishing since H1Z1, which was released in 2015 and went on to gross over
Concerning the transaction, EG7 board member Marie-Louise Gefwert remarked that “we are excited to partner with Cold Iron on this new project. Cold Iron is comprised of a highly talented team that has a proven track record, having delivered great success with AFE. The ‘tried and true‘ approach of leveraging proven gameplay and the team’s expertise as the foundation and continuing to build upon that is smart and highly compelling. We are looking forward to a great partnership with Cold Iron to bring another successful product to market.”
“Our team is fired up like never before. Working with Daybreak and Toadman provides even more wind in our sails,” said
Formerly a wholly owned subsidiary of Daybreak, Cold Iron was carved out at the time of EG7’s acquisition of Daybreak due to the parties not being able to agree on the terms for its inclusion. The ownership of Cold Iron was retained by the Daybreak sellers with
Given the related party aspect of this transaction, it has been managed and resolved exclusively by the independent board members of EG7 and neither
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