Staff at South Australian developer-publisher Mighty Kingdom have penned a letter to shareholders ahead of Friday’s extraordinary general meeting (EGM). The letter implores shareholders to consider staff concerns, with some staff indicating they would not stay at the company should the proposed resolutions pass.
According to a straw poll shared by former Mighty Kingdom General Manager Dan Thorsland alongside the letter, 95% of internal respondents, representing more than 56% of the company, “have indicated that they would not feel comfortable to remain at MK if the resolutions are passed at Friday’s EGM. A vote yes is a vote against the MK team, and a business without a team will be catastrophic for shareholders.”
Thorsland himself stated that the Mighty Kingdom staff behind the letter, which was written as one anonymous voice to protect their careers,”support the current management in continuing with the recovery of this beloved company.”
The letter shares the Mighty Kingdom team’s concerns about a change of leadership, “particularly one that might usher in the return of Shane Yeend,” and notes that “if the proposed changes pass, we cannot envision a scenario where we continue to work for Mighty Kingdom.” The letter calls this choice a “heart-wrenching decision, but one we must make to protect our well-being, our creative spirits, and the values that have defined us.”
One particular quote from an anonymous Mighty Kingdom staff member states that should the resolutions pass on Friday, shareholders “will have driven a knife through the heart of MK and its people. We will not stay, and everything that is currently representative of a business that will succeed, will simply tumble like a house of cards. Who is going to do the work when we all stand up and leave?”
“I would encourage our shareholders to remember that they are investing in the people and the talent, because it is the people who make the games, not the business. If you vote for Shane, you vote against MK, and we won’t be here to see what happens next if you do this,” the letter continues.
This isn’t the first we’ve heard of struggles at Mighty Kingdom in recent months. In November, the company alleged that Gamestar, founded by Shane Yeend (who is a former MK CEO), “continues to make false and misleading statements to the market,” according to reports from the Herald Sun. It also claims that Gamestar and Imagine Entertainment, an associated company, failed to lodge shareholder notices including details of their alleged association. As per our reporting at the time, Mr. Yeend appears to be director of both Gamestar and Imagine Entertainment.
A November 20 letter to shareholders from the Mighty Kingdom board, previously chaired by former ABC managing director Michelle Guthrie, shared its disappointment with the Gamestar partnership and Mr. Yeend’s public statements about the company. Mr. Yeend responded in his own letter to shareholders, which requested an EGM to take place in December to vote on the replacement of the existing board with the aim to “end the tragic mess Michelle Guthrie has overseen since listing.” His letter also refuted a number of statements made by the board.
“If we don’t get the outcome we want for all shareholders we will fight until Mighty Kingdom is in liquidation, and nobody wins then except me,” Mr. Yeend wrote. “But I want us all to win.” His letter describes Mighty Kingdom leadership as “snake oil salesmen, liars and cheats,” and suggests that “MKL makes bad games that don’t make money and the world has told us that.”
Former Mighty Kingdom board chair Michelle Guthrie was ousted in early January at the annual general meeting, with proxy votes cast prior to the meeting voting in the chair’s favour, but physical attendees opting to remove Guthrie from the role. InDaily reports that of the 330 million votes cast, 54.11% were against the chair’s re-election. Guthrie announced prior to the voting that she would stand down as chair and director of the company by the end of March 2024, regardless of the vote’s outcome.
The ongoing disagreement between Gamestar and Mighty Kingdom allegedly stems from Gamestar committing to a $4m contribution as part of a $7m capital raise by Mighty Kingdom in August 2022. $2m of that contribution had yet to be paid at the time of the November letter to shareholders, with Mr. Yeend alleging that this is due to the conditions for the full contribution having yet to be met. Mighty Kingdom rejects this claim.
Whatever the outcome of Friday’s EGM, it appears that some Mighty Kingdom staff are prepared to leave the company (in a fraught employment environment for the games industry no less) should the resolutions pass. The letter closes by beseeching shareholders to “consider the personal stories behind these words. Our pain, fears, and hopes are genuine, and they come from a place of deep love for Mighty Kingdom. We believe in the positive changes the current leadership has ushered in, and we earnestly ask for your support in preserving the Mighty Kingdom we cherish.”
We’ll keep you updated.
Image: Mighty Kingdom
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