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Embracer Group Sells Saber Interactive to Beacon Interactive
Embracer Group made an announcement today regarding the sale of Saber Interactive for a whopping $247 million to Beacon Interactive. The reports of this significant deal initially surfaced several weeks ago, and Embracer has now revealed the details of this transaction. It is important to note that several studios that operate under Saber’s umbrella will also be transferred to Beacon Interactive. Beacon Interactive happens to be a company that is controlled by Matthew Karch, who is also the co-founder of Saber Interactive. Furthermore, Embracer has confirmed that it will be ceasing all its operations in Russia as well. This announcement marks an interesting turn of events within the gaming industry.
Saber to Retain Studios Under Its Wing
As part of this sale, Saber Interactive will retain ownership of several studios that were previously under its wing. These include the likes of 3D Realms, Nimble Giant, New World Interactive, Sandbox Strategies, Mad Head Games, Slipgate, Fractured Byte, Digic, and other Saber-branded studios. On the other hand, Embracer intends to hold onto studios such as Aspyr, Beamdog, Tripwire, Tuxedo Labs, 4A Games, 34 Big Things, Demiurge, Zen Studios, Snapshot, and Shiver. An interesting aspect of this deal is the provision for Beacon Interactive to potentially acquire 4A Games and Zen Studios for an undisclosed sum at a later date.
Back in February, a report by Bloomberg had estimated the value of the Saber Interactive sale to be hovering around the $500 million mark. In 2020, Embracer had acquired Saber Interactive for $525 million and had subsequently brought several studios under the Saber banner. Lars Wingefors, the CEO of Embracer, expressed his satisfaction with this transaction by stating that it benefits both Embracer and the sections of Saber that are parting ways. This decision is viewed as a strategic move to strengthen both companies’ positions in the industry going forward.
According to the official announcement, Embracer will retain the rights to various titles such as Killing Floor 3, Teardown, undisclosed games from its retained studios, along with the upcoming pipeline and back catalog from Zen Studios, Aspyr, and Tripwire. On the other hand, Saber and Beacon Interactive stand to gain access to 38 ongoing game projects as part of this sale, even though the details of these projects have not been publicly disclosed. Speculation suggests that projects like the Knight of the Old Republic remake could be among them.
Embracer Group has been actively involved in a restructuring process recently, which has resulted in the layoff of almost 1,400 employees in the past year. Additionally, 29 game projects have been canceled as part of this effort to streamline operations. In light of this divestiture, Matthew Karch stated, “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.”
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