Undead Labs Was Nearly Sold To Splash Damage Before Xbox Exit

Undead Labs, the studio behind State of Decay 3, was close to being acquired by UK developer Splash Damage with backing from private equity firm Emona Capital, but the deal fell through. The studio ultimately went independent and is now employee-owned while continuing work on State of Decay 3.

• The acquisition was to be funded by Splash Damage's backer Emona Capital
• After the deal collapsed, Undead Labs became independent and employee-owned
• The studio is still developing State of Decay 3 with an unannounced publisher
• The shift to independence came with layoffs at Undead Labs