Following the sales of Saber Interactive (to a new company founded by Saber CEO Matthew Karch) and Gearbox Software (to Take-Two), the Embracer Group held an investors call to confirm the end of its dreaded restructuring program.
15.03.2024 - 19:05 / gamesindustry.biz / Matthew Karch
Sign up for the GI Daily here to get the biggest news straight to your inbox
This Week in Business is our weekly recap column, a collection of stats and quotes from recent stories presented with a dash of opinion (sometimes more than a dash) and intended to shed light on various trends. Check every Friday for a new entry.
After six years of purchasing a variety of developers and publishers, Embracer Group this week confirmed its first sale. The company divested Saber Interactive, plus a number of the studios within that part of the group, to Beacon Interactive, a company formed by Saber co-founder Matthew Karch.
STAT | $247 million - The sale price for Saber Interactive
The deal will have come as no surprise – and not just because word of the sale began spreading earlier in the week. Embracer's struggles have been well documented by this point. The group's ongoing restructuring efforts aim to reduce a net debt of more than $1.5 billion, which it has accomplished so far by laying off more than 1,400 people in the space of nine months, and closing three studios: Saints Row developer Volition Games, reformed TimeSplitters team Free Radical Design, and Campfire Cabal, which had yet to release its first game.
All of the above only reduced Embracer's debt to $1.4 billion by the end of 2023, and the Saber sale just knocks another $205 million off that. But this is just the first of such deals that are expected in the coming months.
"As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce capex." - Embracer CEO Lars Wingefors in the report released alongside the company's most recent financial results
So with Embracer already eyeing up ways to get the weight of its bloated group under control, let's take a look at the potential sales candidates that remain. While it can be hard to keep track of what has been acquired over the years – so hard that there's a Wikipedia page dedicated to it – I've broken things down according to the 11 operational groups that Embracer owns.
Very Important Disclaimer: I'm not a business analyst, and the following should in no way be construed as advice or a forecast. This will be an overview of Embracer's business and why it may or may not sell certain parts of it. If you do, for some reason, want advice from me, it would be: don't buy more things than you can afford to operate.
Internal studios: Alkimia Interactive, Appeal Studios, Ashborne Games, Black Forest Games, Bugbear, Experiment 101, Gate 21, Grimlore Games, Gunfire Games, Handy Games, Kaiko, Massive Miniteam, Metricminds, Mirage Game Studios, Nine Rock Games, Pieces Interactive, Piranha Bytes, Pow Wow Entertainment,
Following the sales of Saber Interactive (to a new company founded by Saber CEO Matthew Karch) and Gearbox Software (to Take-Two), the Embracer Group held an investors call to confirm the end of its dreaded restructuring program.
Embracer have announced that they're selling Borderlands developers Gearbox Entertainment to Take-Two Interactive, owners of 2K Games and GTA 6 developers Rockstar, for $460 million in Take-Two shares. Three Gearbox Software studios - the flagship studio in Texas, together with Gearbox Montréal and Gearbox Quebec - will change hands as part of the deal. Take-Two will also acquire the Borderlands and Tiny Tina's Wonderlands franchises, together with Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem.
Troubled gaming conglomerate Embracer announced Thursday that it has agreed to sell Gearbox Entertainment, the studio behind the Borderlands games, to Grand Theft Auto publisher Take-Two for $460 million.
Rumor has it that Sony and Marvel Studios have almost reached an agreement on Spider-Man 4. Unfortunately, there are still disagreements between the two studios. Sony seems to want a dramatically larger scope of movie than what Marvel and Kevin Feige desire for the fourth installment in the Tom Holland-led superhero franchise.
Chef and restaurateur Jose Andrés inviting actors Jamie Lee Curtis, Bryan Cranston and O'Shea Jackson Jr. over for dinner in a new TV special and Jake Gyllenhaal starring in an update of the pulpy cult classic “Road House” are some of the new television, movies, music and games headed to a device near you.
The collapse of the utterly reckless Embracer Group continues to occur publicly, as juggernaut development unit Saber Interactive has announced plans to split from the embattled Swedish organisation. The division will be purchased by Beacon Interactive, a new holding firm controlled by Saber Interactive’s co-founder Matthew Karch. But as detailed in a press release on the divestment, there’s still plenty to be untangled between the two titans.
Embracer Group has announced the $247 million sale of Saber Interactive to Beacon Interactive, a new parent company that is owned by Saber co-founder Matthew Karch.
Saber Interactive chief operating officer Tim Willits has taken to social media to confirm a «number of titles» remain in development at the publisher — including Warhammer 40,000: Space Marine 2 — following today's Embracer Group sale.
Saber Interactive is officially splitting from Embracer Group, bringing a few more studios formerly owned by the Swedish company with it as well.
As expected, the Embracer Group has sold much of Saber Interactive, which is known for the Metro series, Gloomhaven and remakes of classic Star Wars titles. The buyer is a group of private investors under the umbrella of Beacon Interactive, which is run by Saber co-founder Matthew Karch.
Embracer has officially sold Saber Interactive, to the tune of $ 247 million.
Saber Interactive has parted ways with Embracer Group, buying back the rights to its own work as well as much of its network of studios and contractors.