Paragon Studios did indeed try to purchase itself from NCSoft, and was shocked when the deal fell through at the lats minute.
Speaking with Gamasutra, former Paragon lead designer Matt Miller confirmed a small team of Paragon Studios staffers banded together to try and buy itself after talks with a third-party purchaser fell through.self-buy out plans
“They actively sought another publisher to purchase Paragon Studios from NCsoft. Suffice it to say that eventually the talks broke down. The buyer wasn’t going to buy and NCsoft wasn’t looking to sell. So, plan B, which I always thought was a great plan from the beginning was the management buyout,” he revealed.
“Things looked like they were going to go well and then things just kind of stopped going well. I’m not exactly sure where the sticking points were, but in the logistics of business there’s always some sticking point somewhere [on which] people just aren’t willing to budge and I think that’s where we ended up. There were one or two points where neither side could budge.
“On the night before we all got the notice of the studio shutting down, Brian, Ross, and Destin were in there still trying to work out that deal. We were a signature away from things going through or not – and we unfortunately fell on the not side.”
City of Heroes closed in November 2012 after eight years in operation. It was far more successful after its free-to-play transition, boasted one of the best character creation suites out there, and was just generally extremely well-loved by its fans.
Thanks, Shack News.