Funcom actively seeking investment options

Funcom actively seeking investment options
Craig Chapple

By Craig Chapple

August 10th 2015 at 5:25PM

LEGO Minifigures Online developer will consider funding, a takeover, merger or 'any other available options'

Funcom is actively seeking investment options in an effort to secure its future.

The Norwegian developer is undertaking a review of its options moving forward as it seeks to pay off its debts. It is actively seeking discussions with interested parties over possible investment, an acquisition, merger or “any other available options”.

Last month the studio said its latest game, MMO title LEGO Minifigures Online, was not meeting initial revenue forecasts. While iOS sales had performed better than PC, the lower price point meant additional sales were not enough to compensate for slow PC sales. Test marketing activities were also unable to attract a sufficient number of new players.

The studio has said it still has debts owed by June 2016, and is still seeking solutions for repayment.

Revenues generated from all of Funcom’s games are not expected to cover both operational expenses and debt repayment obligations.

The Oslo-based developer has experienced financial problems for the last two years, due to the lack of sales for its MMO The Secret World and now its struggles to get LEGO Minifigures Online off the ground.

In January last year the company was temporarily suspended from the Oslo Stock Exchange in early hours trading. It was investigated by Norway's economic crime unit on suspicion of infringement of the provisions of the Securities Trading Act with regards to financial information given to the market surround the launch of The Secret World. A studio spokesperson said it co-operated fully with investigators, and the trading halt was lifted on the same day.

In April, the studio picked up £1m in additional funds for the development of Lego Minifigures Online, as part of a deal with US firm Yorkville Advisors. But despite the extra funds, the game has still struggled to make an impact with consumers.

Funcom has promised to share details of outcome of its company review and potential other developments in due course.