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RI Gov. Chafee working to prevent 38 Studios shutdown, unaware of any new cash for company [update]


The situation faced by troubled MMO developer 38 Studios is not improving. According to Rhode Island Governor Lincoln Chafee, the company has not received any new investment. In a sudden press conference late today, he said the studio had not received any outside investment nor any of the new tax credits it has applied for. NBC10 reports that, when asked if 38 Studios would be closing, Chafee said he would do what he could to prevent it.

WPRI reported today that CEO Jennifer MacLean removed the title of chief executive from her LinkedIn profile and listed her departure as having occurred in March. John Blakely, senior vice president of product development, also revised his LinkedIn profile to show that he left the company this month. Joystiq has also been informed of continuing layoffs at the company, and that health insurance has run out.

The value of 38 Studios' Amalur intellectual property is estimated to be in the range of $20 million, according to Wedbush Securities analyst Michael Pachter. 38 Studios put up the IP as collateral against its $75 million loan, which could end up costing RI taxpayers $112 million if 38 Studios shutters.

Update: 38 Studios employees have not been paid since May 1. WPRI reports 38 Studios may be ineligible for the millions of dollars in state tax credits because it isn't incorporated in Rhode Island.

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