Embracer Group sells Saber Interactive studios and assets, including games like Space Marine 2 and Knights of the Old Republic remake
Saber Interactive has split from Embracer Group, buying the rights to its own work as well as much of its network of studios and entrepreneurs. Saber co-founder Matthew Karch recently created Beacon Interactive, a private investor-backed holding company that purchased Sabre, alongside several of its subsidiaries, for a whopping $247 million (via VGC). The acquired […]
Saber Interactive has split from Embracer Group, buying the rights to its own work as well as much of its network of studios and entrepreneurs.
Saber co-founder Matthew Karch recently created Beacon Interactive, a private investor-backed holding company that purchased Sabre, alongside several of its subsidiaries, for a whopping $247 million (via VGC). The acquired companies represent more than 3,000 developers and include Mad Head, DIGIC, Nimble Giant, Fractured Byte, Slipgate, 3D Realms, New World Interactive, SPL, Stuntworks, Bytex, 4A Games and Zen Studios. However, Zen and 4A are subject to a call option within a certain time frame – with those included, however, the purchase price jumps to around $500 million if you also include the value of the shares and liabilities exchanged.
In a letter obtained by Bloomberg News and posted on X (formerly Twitter) by journalist Jason Schreier, Karch outlined his thoughts on the decision.
“We specifically chose these studios for acquisition because we believe they represent the best of what Saber is and can be. This group includes some of the most talented and creative developers in the world. Our journey and, more Most importantly, the projects we have in development speak volumes about our capabilities. I truly believe we have the best collection of game developers in the industry right now thanks to all of you.
Embracer’s official announcement of the deal is a bit misleading. Saber is actually bringing in 4A Games (Metro) and Zen Studios (Pinball) via options, which (combined with liabilities) equates to a purchase price of around $500 million, as Bloomberg reported last month https://t.co/3Pj0TQ5FStMarch 14, 2024
For those who don’t know, Saber Interactive currently oversees over 38 projects, including Warhammer 40,000 Space Marine 2 and a remake of the classic sci-fi role-playing game (RPG) Knights of the Old Republic.
This transaction also marks the end of Embracer’s operations in Russia.
Embracer CEO Lars Wingefors called the move “a win-win solution for Embracer and the parts of Saber that will now be leaving us.” This transaction places both companies in a stronger position to thrive in the future. […] Cash flow improves immediately and we remain committed to reducing net debt. The transaction creates additional headroom to service debt in line with existing banking arrangements and will improve financial flexibility. »
Embracer’s “restructuring” over the past six months has resulted in a large number of job losses, with more than 900 employees affected between September and November alone.
Hopefully, this transaction marks a move by Embracer toward more sustainable business practices.
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