Funko Exits Board Game Market, Sells Studio to Goliath Games
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Funko, the well-known pop culture collectible company, has made a significant move by selling its board game studio, Prospero Hall, to Dutch publisher Goliath Games. This decision comes amid a challenging financial landscape for Funko, which has been restructuring its operations to focus on core assets.
Key Takeaways
- Funko has sold its board game studio, Prospero Hall, to Goliath Games.
- The sale includes licenses for popular board games like Funkoverse and adaptations of classic films.
- Goliath Games will now exclusively distribute Funko’s board game catalog and collaborate on new titles.
- Prospero Hall’s staff reportedly were not included in the sale, raising concerns about their future employment.
- Funko aims to streamline operations and reduce debt through this transaction.
Details of the Sale
In a press release dated January 17th, Funko announced the sale of its board game division to Goliath Games, a company known for family-friendly games such as Rummikub. The agreement allows Goliath to distribute Funko’s existing board game catalog, which includes:
- Pan Am
- Funkoverse series
- Film adaptations: Jaws, Back to the Future, Rear Window
This partnership marks a strategic shift for Funko, which had previously acquired Prospero Hall in 2019 to enhance its board game offerings. The studio, known for creating complex games, was responsible for popular titles like Disney Villainous.
Implications for Prospero Hall Staff
Reports indicate that the sale did not include the staff of Prospero Hall, which raises questions about the future of its approximately 20 employees. Funko’s press release mentioned the transfer of assets but did not clarify the status of the studio's designers. This lack of information has led to speculation about potential layoffs or reassignments within the company.
Funko's Financial Landscape
The sale comes on the heels of a tumultuous financial year for Funko, which saw significant layoffs and a leadership change. In July 2023, the company laid off around 200 employees and replaced CEO Brian Mariotti with interim CEO Michael Lunsford. Despite these challenges, Funko's board games division was one of the few areas that reported profits during a period of overall financial struggle.
Lunsford stated, "The transaction is designed to keep with our previously stated goal of streamlining our business by focusing on our core assets. We intend to use the proceeds from this transaction to reduce our debt. We believe that Goliath’s size and scale, as well as their intimate knowledge of the global games and toys market, make them a strong partner for Funko in the board game category."
Looking Ahead
As Funko transitions away from the board game market, Goliath Games is poised to leverage its expertise to expand the Funko brand within the gaming community. The collaboration is expected to yield new games and puzzles, potentially revitalizing interest in Funko’s offerings. However, the fate of Prospero Hall’s creative team remains uncertain, leaving many in the industry watching closely for developments.
This strategic move reflects broader trends in the gaming industry, where companies are increasingly focusing on core competencies and partnerships to navigate a rapidly changing market.