After a buying spree that saw countless companies purchased, Embracer Group has spent the last year attempting to cut costs and reduce debt. The good times came to an end following a $2 billion deal that reportedly fell through, and Embracer has been scrambling to recover ever since. As a result, countless jobs have been lost thanks to layoffs and studio closures. Fortunately, it seems the latest development at the company was able to avoid just that, as Embracer has divested “selected assets” from Saber Interactive for $247 million. The studios will be purchased by the company Beacon Interactive, where Saber co-founder Matthew Karch serves as the director.ย
Who Keeps What
As a result of this deal, Saber Interactive will retain ownership of several studios. These include DIGIC, Slipgate, Sandbox Strategies, 3D Realms, Fractured Byte, Mad Head Games, New World Interactive, Nimble Giant, and “all Saber branded studios.” Meanwhile, Embracer will retain Aspyr (best known for its Star Wars remasters), as well as 34 Big Things, Shiver, Snapshot, Tripwire, Beamdog, Tuxedo Labs, Demiurge, 4A Games, and Zen Studios.ย
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At least, that’s the case for now. The deal also mentions that there is an option for Saber to acquire 4A Games and Zen Studios, which would bring the total for Embracer up to $500 million. Reporting from Bloomberg’s Jason Schreier indicates that Saber already plans to go through with that option.ย
Embracer’s Future
“Over the past four years, I have been proud to be part of Embracer’s amazing transformation into one of the leading game companies in the world. As part of the company’s efforts to reorganize for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. This divestment leaves both parties in much better positions to grow our respective businesses. I will continue to remain a large, long-term shareholder of Embracer and we will remain partners on several ongoing and future projects. This transaction also safeguards the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades,” Karch said in a press release.
It remains to be seen how things will play out, but this looks like a win all around. These studios will remain open, and there have been no announcements regarding layoffs or closures. At the end of the day, that’s good news for employees and consumers. The fate of Embracer as a whole remains a very big question, and there are still a lot of reasons for concern given the events of the last year. Embracer’s buying spree has had a negative impact on a lot of livelihoods, but hopefully things are starting to turn around.ย
Are you happy to hear that these studios will remain open as part of this deal? How do you feel about everything happening at Embracer? Share your thoughts with me directly on Twitter atย @Marcdachampย or on Instagram atย @Dachampgaming!
