Valve’s Near-Bankruptcy: How a Summer Intern Saved the Company

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Valve’s Near-Bankruptcy: A Summer Intern’s Heroics

Twenty years after the release of Half-Life 2, a new documentary reveals a pivotal moment in Valve’s history: a near-bankrupting lawsuit with Vivendi.

The Lawsuit

The dispute centered on Vivendi’s unauthorized distribution of Counter-Strike in South Korean cyber cafes. Vivendi’s countersuit against Valve, its COO Scott Lynch, and co-founder Gabe Newell nearly crippled the company. Gabe Newell even had to consider selling his house to continue the fight. A deal with another publisher provided temporary relief.

A Summer Intern’s Discovery

The turning point arrived during the discovery phase. Vivendi provided millions of Korean emails. A summer intern, Andrew, fluent in Korean, discovered an email exchange between Vivendi vice presidents admitting to destroying incriminating Valve documents. This revelation dramatically shifted the case in Valve’s favor.

The Aftermath

Judge Zilly ruled all matters of fact in Valve’s favor. The resulting settlement returned Valve’s IP and secured its future, paving the way for Steam’s success. Andrew’s crucial role remains largely unacknowledged, with the documentary failing to mention if he received a job offer from Valve. This unsung hero’s actions saved a gaming giant from financial ruin.

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