Minority shareholders of Devsisters (194480.KQ), facing a stock price plunge following the commercial failure of its new game "CookieRun: Oven Smash," are pushing to convene an extraordinary general meeting to hold management accountable. In response, Devsisters has moved to contain the situation by stabilizing "Oven Smash" services and ramping up marketing for its flagship title "CookieRun: Kingdom."
According to shareholder activism platform "Act," the coalition rate among Devsisters minority shareholders reached the upper 2% range as of Wednesday. Once voting rights reach 3%, shareholders can request an extraordinary general meeting and initiate procedures to dismiss directors and auditors.
The collective action stems from the recent sharp decline in share price. Devsisters' stock surged to the 40,000 won range last month on expectations for the "Oven Smash" launch. However, operational issues including overheating and optimization failures emerged immediately after release, causing the game to drop from major mobile game charts and the stock price to be cut in half.
In response, minority shareholders are strongly demanding enhanced shareholder value, accountable management, and improved communication. In a letter sent to the company Tuesday, they urged, "Share the company's direction and concerns through direct communication with shareholders, and ensure that corporate value is fairly recognized."
Shareholders particularly demanded swift improvements to "Oven Smash" issues along with voluntary salary cuts by executives and employees to share the pain. If their demands are not met, they plan to expand their stake to 10% to increase shareholder influence and are also considering an alliance with Com2uS, the second-largest shareholder.
As shareholder backlash intensified, Devsisters scrambled to respond. CEO Cho Gil-hyun and PD Lee Won-young personally conducted live broadcasts on January 2 and 7, promising major patches including user experience improvements, balance adjustments, and optimization. A large-scale update is scheduled for Thursday to significantly address key complaints raised by users.
The company is also betting on recovering user numbers for "CookieRun: Kingdom," its biggest cash cow. It plans to secure new customer segments through a collaboration with Netflix hit "K-Pop Demon Hunters" running until February 7. Devsisters aims to restore lost trust and its stock price through such content stabilization and marketing efforts. A company official said regarding stock recovery measures, "We plan to focus first and foremost on providing stable services for the time being."
