Embracer Group is currently undergoing major internal reorganisation after apparently overextending, with hard-working employees bearing the cost in the ensuing layoffs and closures. This restructuring has already begun, but a new report has shed some further light on how the situation all came about.
Axios reports, citing "four sources familiar with the deal", that the Swedish holding company's mystery partner, the one that walked away from a deal worth $2 billion after seven months of negotiations, was none other than Savvy Games. A "verbal agreement" was in place, and this reversal caused Embracer's shares to plummet 40% in response.
The Savvy Games Group is chaired by Prince Mohammed bin Salman, the millennial Crown Prince (and Prime Minister) of Saudia Arabia, and the state-funded investment group is itself snapping up developers at an astonishing rate. Mohammed bin Salman (or "MBS", as he prefers) is a controversial figure whose plans for the future include using the vast capital in Saudia Arabia's sovereign wealth fund, or Public Investment Fund (PIF), to invest billions into (amongst other things) acquiring video game companies.
Embracer declined at the time to confirm the identity of its potential partner. Axios adds that its sources were "less certain about why Savvy walked away", and so that piece of the puzzle still eludes us.
Are you surprised that Savvy Games was the mystery partner after all? Where do you think Embracer goes looking for a dance partner next? Let us know in the comments section below.
[source axios.com, via eurogamer.net]
Comments 18
Embracer group will be done within 5 years
would be a good purchase for someone
PIF has already ruined football. I would really hate to see them ruin the video game industry too.
Gameswashing is next, they’ve already targeted eSports. I reckon they’ll meet more resistance with games, there are a hell of a lot more out and proud devs than there are male footballers. Gamers are a fickle bunch too, if there’s something that’s universally disliked, it’s corporations dictating trends.
Embracer saw Microsoft try to acquire Activision and tried to follow them in acquiring a morally corrupt company 💀
@CastelloGG they wont ever ruin the games industry for me. I can understand exactly why people think that football,golf and formula 1 has been ruined but i still enjoy them. Unless it directly affects me personally in my day to day living (existing?) Then i'm not going to worry about something i have zero control over.
@Deoxyr1bose Embracer wasn’t trying to acquire anyone. They was seeking more funding and investment from morally corrupt investment firm.
Saudi money is blood money. Major shame on Embracer for even attempting this in the first place. As always, the regular workers get screwed. Corporations are not your friends.
The Saudi Government already own 8% of their shares, it's not as if they haven't been taking blood money already.
Between the Saudi’s, Microsoft and TenCent, it seems things are set to become very very different.
Good or bad?
I’ll let you decide.
@PSme I'll say bad big corp is buying up everything.
[Fwip].. Did I just hear Microsoft's chequebook open?
Everytime I read about struggles in the industry it's concerning to think that Microsoft will come marching in to 'save' the day.
Yeah i echo Microsoft buying, they would get a crapton of content for Game Pass, plus Embracer makes alot of the averageish caliber stuff that the service attracts in droves. Addtionally, Xbox would finally lay claim to Lara Croft. After ActiBizz buyout drama, i think Phil Spencer wants a rest though...
This sort of thing could be an underhanded strategy to devalue Embracer, so that the Saudis can buy then outright at a better price. They did state they intended to make a "major acquisition."
@ThorsHammer Isn't Lara Croft already sold to Amazon?
Will this effect KOTOR remake? Hope it wont get cancelled
@ThorsHammer Yeah, he’ll likely wait a while before he tries something big again. Especially since he’d be smart to wait until the heat is off. Phil is many things, but he doesn’t strike me as stupid.
On topic, Sauidis, Tencent (CCP), and MS trying to see who can take over the world first.
@Flaming_Kaiser no Embracer still owns, theyve entered a publishing agreement with Amazon to finance new game, and make a tv show via Prime. Maybe they will eventually sell the IP if things get worse..
@ThorsHammer Ah ok thanks I thought Amazon bought the IP completely.
Leave A Comment
Hold on there, you need to login to post a comment...