Thunderful Group sells off distribution business as it focuses on games
| Date | Type | Companies Involved | Size |
|---|---|---|---|
| Jul 2, 2024 | other | Thunderful | Not disclosed |
- Thunderful Group has sold Thunderful 1, Thunderful Solutions, Amo Toys, and Bergsala Aktiebolag to Bergsala NDP
- The group wants to become a "pure-play games company"
Embattled Thunderful Group has divested from its distribution business as the company looks to refocus its efforts on games development and publishing.
The publisher has sold Thunderful 1, Thunderful Solutions, Amo Toys, and Bergsala Aktiebolag to the newly formed Bergsala NDP. The new firm is owned by Thunderful’s largest shareholder and board member Owe Bergste.
The move is part of the company’s larger plan to become a "pure-play games company", despite distribution being its largest revenue generator in 2023.
Bergsala, a Swedish distributor of Nintendo games, was one of the publisher’s most successful subsidiaries last year. The company previously merged into the Thunderful group in 2019.
In 2023 Thunderful reported net revenue of SEK 2.82 billion ($274 million), with its distribution business alone generating 2.4 billion SEK ($224.6 million). However, the organisation still saw a net loss of $59 million.
Despite distribution representing a large portion of Thunderful’s 2023 revenue, its decision to divest and focus more specifically on game development and publishing is with “mid-to-long-term strategic objectives in mind”, according to company chairman Patrick Svensk.
"Unsustainable" M&A
Following completion of the deal, Thunderful now comprises of just its games development, publishing and consultancy arms, including Coatsink, Robot Teddy, Rising Star Games, Image & Form, and Early Morning Studio.
Earlier this year, Thunderful acknowledged that it had overinvested in M&A activity and that this had proven "unsustainable" in “the current industry climate”.
The company initiated a new plan to cut its annual costs by up to $10.5 million following the appointment of Martin Walfisz as CEO and executive leadership changes. Thunderful proceeded to cut 20% of its workforce, or approximately 100 employees, and also sold publisher Headup Games for €500,000, which it had purchased three years ago for €11 million.
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