Ratbag gets a dose of ratsack

I want to express my commiserations to the staff of Ratbag after Midway abruptly, and apparently without warning, closed the studio. Having only acquired the company in August, Midway has laid-off all the staff the week before Christmas.

As an outside observer who has nothing to do with either company, I can not escape the feeling that the purchase of Ratbag was ultimately about the acquisition of original IP (Intellectual Properties). Midway is either in serious financial trouble, or they had every intention to close the studio after the deal settled. For me, it seems that the later is entirely plausible.

As part of the acquisition, ten staff were offered shares in Midway’s common stock, but these were tied to performance targets for three years (refer to http://sumea.com.au/snews.asp?news=1839). Now that the studio has been closed, with comments from Midway about unsuitable quality levels, it seems that Midway gets to keep their stock and the relevant Ratbag staff leave empty handed. Note Midway claims that “these shares were determined to be compensation for future service". Bah Humbug!

This situation is deplorable and, although I hope I am wrong, seems quite underhanded. Add this to the list of “ten easy ways to acquire IP without paying the full asking price”.

It seems that Scrooge is alive and well in corporate America.