Tequila Works’ Game Rights Up for Auction After Filing for Insolvency

Tequila Works, the Spanish game studio behind acclaimed titles like Rime, Gylt, and Deadlight, is auctioning off its intellectual property following its insolvency filing in 2024. The studio, which has been struggling under prolonged market challenges, has decided to put its valuable game rights and in-development projects up for sale on the auction platform Escrapalia.

Among the items up for grabs are some of Tequila Works’ most notable games, including:

• Deadlight – the studio’s first title, a side-scrolling survival horror game.
• Rime – an atmospheric adventure game that captivated players with its beautiful, open-world exploration.
• Gylt – a horror adventure game that has received praise for its eerie storytelling and unique art style.

In addition to these established titles, the auction also includes several in-progress projects:

• The Ancient Mariner
• Dungeon Tour
• Brawler Crawler

Tequila Works’ financial troubles have been brewing for some time. Despite success with Rime and Gylt, the studio struggled to stay afloat amid challenging market conditions. In 2024, they were forced to file for insolvency after facing significant financial difficulties.

The company’s troubles were compounded by its involvement with Riot Forge, the now-defunct publishing label under Riot Games. Tequila Works was behind Song of Nunu: A League of Legends Story, one of the final releases under Riot Forge before the label was shut down in January 2024. This failure, combined with underperforming games from Riot Forge, played a role in Tequila Works’ downfall.

In 2022, Tencent acquired a controlling stake in Tequila Works, a move that seemed natural given Tencent’s stake in Riot Games. However, this connection hasn’t been enough to shield the studio from the broader contraction in the gaming industry. Factors such as the failure of Gylt—which originally launched as a Google Stadia exclusive—and the lackluster reception of other Riot Forge titles contributed to the studio’s current state.

As Tequila Works auctions off its game rights, the future of these beloved titles—and the potential for new ownership to carry them forward—remains uncertain. Fans and industry observers will be watching closely to see where these games and projects end up, and whether the studio’s iconic creations will find new life under fresh leadership.