Krafton and Unknown Worlds Entertainment, the studio developing Subnautica 2, reach a settlement over disputed earn-out bonuses, ending a legal fight. Krafton says in a regulatory filing that the company and Unknown Worlds’ lead developers agree to withdraw all pending lawsuits as of Tuesday. The dispute follows Krafton’s acquisition of Unknown Worlds in October 2021, a deal intended to expand its portfolio beyond PUBG: Battlegrounds.
Multiple outlets report that the disagreement centers on bonuses tied to performance or milestones promised to studio leadership and/or staff, with figures cited in coverage describing the dispute as involving up to about $250 million. The conflict escalates after Krafton removes Unknown Worlds co-founders Charlie Cleveland and Max McGuire, and CEO Ted Gill, from their roles, citing a lack of leadership and delays in Subnautica 2’s development. In response, former leaders file suit against Krafton in Delaware.
Under the settlement, Krafton agrees to pay bonuses to Unknown Worlds staff, according to outlets including Polygon and The Verge, while Krafton frames the outcome as a mutual decision to drop the court fight and close remaining legal actions.
