The entire staff behind Annapurna Interactive, the boutique video game publishing arm of Annapurna studio, has resigned after negotiations fell apart with owner Megan Ellison.

Annapurna Interactive President Nathan Gary and his entire team were negotiating with owner Megan Ellison, daughter of tech billionaire Larry Ellison, to spin off Annapurna Interactive as its own independent company. When negotiations fell apart, Gary, other executives, and about two dozen staff all resigned.

“All 25 members of the Annapurna Interactive team collectively resigned,’’ Gary and the group said in a statement to Bloomberg. “This was one of the hardest decisions we have ever had to make and we did not take this action lightly.”

A spokesperson from Annapurna confirmed they were exploring spinning off the publishing arm, noting both parties failed to reach an agreement as Megan Ellison reportedly walked away from the deal.

“Our top priority is continuing to support our developer and publishing partners during this transition,” Ellison said in a statement. “We’re committed to not only our existing slate of games but also expanding our presence in the interactive space as we continue to look for opportunities to take a more integrated approach to linear and interactive storytelling across film and TV, gaming, and theater.”

Annapurna noted all existing games and projects the company has been working on will remain under their umbrella.

Newly appointed president Hector Sanchez has reportedly told developers that Annapurna will honor existing contracts and replace the staff who have left. Sanchez was originally a co-founder of Annapurna Interactive and was brought back last month.