The Embracer Group, a prominent acquisition company that owns numerous studios and developers, including mobile gaming, has successfully raised $182.7 million through a share issue. This comes at a crucial time for Embracer, as it recently suffered a major setback when a reported $2 billion deal fell through just hours before the company released lukewarm Q4 financial results. The aftermath of this event was disastrous for Embracer’s share price, leading to significant layoffs and a restructuring plan.

In light of these challenges, Embracer has resorted to raising funds through the issuance of 80 million new shares. While this share issue will provide the company with much-needed cash, it also dilutes the value of individual stocks similar to inflation. Despite its risks, Embracer considers this move necessary to strengthen its finances and support its restructuring efforts.

Embracer’s Struggle for Survival

Many industry observers view this latest development as a desperate measure by Embracer to salvage a business model that heavily relies on continuous expansion. Although some aspects of Embracer’s business, such as Deep Silver’s record sales for Dead Island 2, have shown promising performance, the collapse of the $2 billion deal has caused significant headaches for the company.

CEO and co-founder Lars Wingefor emphasized the strong support from existing and new investors in this share issue, seeing it as a testament to Embracer’s strategy to tap into untapped potential within the group. He stated, “While the restructuring program is developing according to plan, the proceeds from this share issue will further strengthen our financial position, improving both financing costs and operational flexibility. Ultimately, this will empower our entrepreneurs and creators to continue delivering outstanding experiences to gamers worldwide.”

Only time will tell if this, coupled with the ongoing restructuring efforts, will be sufficient to steer Embracer Group back onto the right track in a timely manner.