As someone who has no idea about business, can anyone help explain to me why this is even happening? Didn't Witcher 3 sold like 13 millions aka super duper profits?
I'm going to do an ELI5 post, so apologies if you know half of that.
They are publicly traded, which means that everyone can buy shares in a company. There are many reasons why company may want to go public but it all basically comes down to injecting money into the business, but in exchange you give away part of the ownership. Publicly traded companies have a board that runs the business and shareholders, who own the company. Shareholders get votes that allow them to influence the business. Shareholder that controls over 50% of the shares is called a majority shareholder. Their votes allow them to pretty much make all of the decisions in the company.
Now, companies can be taken over by another company in various ways. One of them is when a potential buyer presents its buyout bid to the board, which can accept or deny the offer. If it accepts, it's called a welcome/friendly takeover. But a potential buyer doesn't have to take that route. It can also talk directly to the shareholders and buy their shares. This way it can try to become the majority shareholder without the approval of the board.This is called a hostile takeover.
Now, in the case of CD Projekt, the founders and employees control about ~35 to 40% of the shares. It means that there's no majority shareholder, and the company could potentially be taken over if someone talked to other shareholders and managed to get over 50% of the shares.
The move that CD Projekt is taking, calls for an introduction of a rule, in which shareholders that control 20% of the vote in the company or more, automatically have their vote restricted. Those restrictions will only be lifted, if that shareholder decides to buy all of the remaining shares in the company at once for a satisfactory price. In practice it means that they'll have to buy the remaining 80% in one go and for a significantly higher price than the market price.
This is oversimplified explanation, but that's the gist of it.