Embracer Group continues to shed studios in its quest to reduce the company’s debts. The company is a far cry from its 2020 spending spree, when it shelled out billions of dollars to acquire more than 27 game studios (including Gearbox and Saber Interactive). Several smaller studios that were part of this acquisition streak were folded into Saber Interactive as well.
In a continued effort to get out from under its debts after layoffs, studio closures, and cancellations, Embracer Group is selling Saber Interactive to a private investment group for $500 million. That sounds like a great number except that Embracer originally bought Saber for $525 million and has added some studios into the brand, increasing its size while losing money in the sale. Saber Interactive will become a privately owned company with around 3,500 employees and will continue to develop the highly anticipated Knights of the Old Republic remake that was originally being developed by Aspyr until 2022. The deal also includes an option for bringing along multiple Embracer subsidiaries as part of it, according to sources.
If that wasn’t enough cause for celebration, reports coming from Kotaku and others state that Gearbox Studios may soon also find its freedom from Embracer. Gearbox CEO Randy Pitchford has been saying for some time that it was possible that Gearbox would be sold to another company or possibly raise enough funds to make itself independent again. Reports are saying that the likely event is a sale that will see Embracer Group recoup at least part of the $1.3 billion it paid for the studio in 2021. It is not known who will be buying Gearbox or how much the sale will be for, but Gearbox as a studio has highly valuable IP like Borderlands that makes it an appealing target for acquisition.
Embracer Group went all-in on acquisitions over a 3-year span that ultimately has turned into a disaster for them after losing out on a massive $2 Billion deal with Saudi Arabia firm Savvy Games Group. These moves are unlikely to be the last as Embracer continues to find ways to dig itself out of the hole it created. Who knows if Embracer Group will survive or if it will eventually dissolve and all those studios will move to new owners.
Image from: Saber Interactive
