Embracer Group sells off Saber Interactive studios and assets, including games like Space Marine 2 and Knights of the Old Republic remake

Saber Interactive Buys Back Rights from Embracer Group

Saber Interactive has recently made the decision to part ways with Embracer Group, reclaiming the rights to its own work and a significant portion of its network of studios and contractors.

Co-founder Matthew Karch has established Beacon Interactive, a holding company funded by private investors, which has acquired Saber and many of its subsidiaries for a staggering $247 million. This acquisition includes over 3,000 developers from companies such as Mad Head, DIGIC, Nimble Giant, and more. Additionally, there is an option to purchase Zen Studios and 4A Games within a specific timeframe, which could increase the total purchase price to approximately $500 million when factoring in shares and liabilities.

Karch’s Perspective on the Acquisition

In a letter revealed by Bloomberg News and shared on social media by journalist Jason Schreier, Karch expressed his views on the transaction.

“We have chosen these studios for acquisition because we believe they embody the essence of what Saber represents and can achieve. This group comprises some of the most talented and innovative developers globally, and our ongoing projects demonstrate our capabilities. I strongly believe that we now have the premier collection of game developers in the industry, thanks to all of you.”

Saber Interactive is currently managing a portfolio of over 38 projects, including titles like Warhammer 40,000 Space Marine 2 and a remake of the renowned sci-fi RPG Knights of the Old Republic.

The acquisition also signifies the conclusion of Embracer’s activities in Russia.

Embracer’s CEO Views on the Transaction

Embracer CEO Lars Wingefors described the transaction as a “win-win solution,” benefiting both Embracer and the sections of Saber that are departing.

Wingefors stated, “This deal positions both companies for future success […] Cash flow will see an immediate enhancement, and we are dedicated to reducing our net debt. The transaction provides additional leeway to manage debt as per existing bank agreements and enhances our financial flexibility.”

Over the past six months, Embracer’s restructuring efforts have led to a significant number of job losses, affecting more than 900 employees between September and November.

This move by Saber Interactive could signal a shift for Embracer towards more sustainable business practices.

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