KRAFTON has agreed to pay Unknown Worlds the $250 million bonus tied to its 2021 acquisition, The Korea Economic Daily reports, citing sources familiar with the matter.

The payment closes out one of the more contentious earnout disputes in recent game industry memory. Neither KRAFTON nor Unknown Worlds commented on the report.

Why does the bonus exist?

When KRAFTON acquired Unknown Worlds five years ago, the deal was structured at $750 million total. The South Korean publisher paid $500 million upfront and set aside the remaining $250 million as an earnout — a contingent payment the San Francisco-based studio could only collect after hitting performance benchmarks. Those benchmarks were expected to be met after the launch of Subnautica 2.

How did Subnautica 2 perform?

The underwater survival sequel exceeded expectations. It launched into early access on May 14, 2026 and sold more than 4 million copies in its first five days. Analysts estimated gross revenue over that same window at roughly $100 million — an estimate, not a disclosed figure.

By hitting the milestones attached to the acquisition agreement, the studio's performance effectively activated the deferred payout, leaving KRAFTON with a $250 million obligation.

What happened in court?

The bonus became the central issue in a legal dispute between the two companies last year. In the summer of 2025, KRAFTON abruptly dismissed three Unknown Worlds executives.

The executives argued the company fired them to delay Subnautica 2 past its release window and thereby avoid the payout. The court sided with the developers on both counts: it ordered KRAFTON to reinstate the studio's CEO and extended the bonus deadline, keeping the earnout in play.

What changes for the business?

If the report holds, KRAFTON absorbs a $250 million cash outflow tied to a title that has already demonstrated strong early-access revenue — a rare case where the earnout mechanism works as designed for the acquired studio rather than becoming a permanent point of leverage for the acquirer.

For studios weighing acquisition offers, the case is a concrete data point on how contingent deal structures hold up under legal scrutiny, and how courts treat acquirer conduct around milestone deadlines.

Neither company has confirmed the payment terms or a timeline for the transfer. Whether KRAFTON discloses the payout in its next financial filing is worth watching.