The struggling MMO specialist Funcom is back in liquidity after a major investment.
Last year things looked bad for Funcom. After a financial flop with “LEGO – Minifigures Online”, it seemed for a long time that the Norwegian company was heading towards closure.
Things hadn’t gone smoothly in the years prior either – since The Secret World had an unfortunate launch, the company had been keeping afloat with “aging MMOs” that were still profitable, but not enough to fund new projects. And as Age of Conan, Anarchy Online, and The Secret World generated less income year by year, it was clear that after the LEGO flop, which they likely financed on credit, an end was in sight. They cut costs year after year, but revenues also declined.
Now they have adopted a new strategy, aiming to release more titles, including smaller games, and wanting to experiment and market them differently. With “The Park” they began in 2015. Currently, hopes are resting on the survival MMO “Conan Exiles.”
And they have good news to announce: There is a private investment of 6.3 million US dollars. Additionally, they have reduced their liabilities by 7.7 million US dollars – this happened through a “conversion process.” As a result, they are no longer in the red by 10,000,000 US dollars, but back to being liquid with 4 million dollars.
The CEO of Funcom speaks of a “significant turning point” in the company’s history. The financial recovery now allows the company to get back on the right track and fully implement the new strategy. They also assure that they will continue to maintain existing MMOs.
