Update, 03/15/24:

Last month, reports surfaced regarding Embracer Group’s decision to sell off Saber Interactive, the developer behind the upcoming Star Wars: Knights of the Old Republic remake. The deal was rumored to be around $500 million, according to a Bloomberg report.

Now, it has been confirmed that Embracer has indeed sold Saber Interactive to a group of private investors under the name Beacon Interactive. This new venture is led by Saber Interactive co-founder Matthew Karch, as reported by VideoGamesChronicle.

Embracer sold Saber Interactive to Beacon Interactive for $247 million initially, with an option to also acquire Metro developer 4A Games and Pinball FX developer Zen Studios. This additional acquisition brought the total price tag to approximately $500 million. According to Bloomberg reporter Jason Schreier, Karch and Saber Interactive have exercised this option, bringing both 4A Games and Zen Studios under the Beacon Interactive umbrella.

Acquisition by Beacon Interactive

As part of the acquisition deal, Saber Interactive, along with its worldwide studios and exclusive contractor relationships, will now operate under Beacon Interactive. Karch expressed his optimism about the acquisition in a letter to Saber Interactive, highlighting the talent and potential of the studios involved.

The deal leaves Embracer with studios such as 34BigThings, Aspyr, Beamdog, Demiurge, Shiver, Snapshot Games, Tripwire, and Tuxedo Labs. Despite the transfer of 4A Games to Saber Interactive, Embracer retains the license and publishing rights for the Metro series on PC and console.

Statement from Embracer CEO

In a statement, Embracer CEO Lars Wingefors expressed satisfaction with the deal, which allows Embracer to discontinue operations in Russia while maintaining key companies and valuable IPs under its ownership. Wingefors sees this transaction as beneficial for both Embracer and the parts of Saber Interactive now operating independently.

Future for Tuxedo Labs

Following the acquisition, Tuxedo Labs, the studio behind Teardown, shared its plans for the future under Embracer. The team expressed enthusiasm about gaining creative control and independence, while Saber Interactive will continue to support Teardown’s ongoing development.

You can read Tuxedo Labs’ full statement below:

Original story, 02/29/24:

Embracer Group, known for significant studio closures and layoffs, is in the process of selling off Saber Interactive, the developer working on the Star Wars: Knights of the Old Republic remake. The deal, valued at $500 million, will make Saber Interactive a privately owned entity separate from Embracer.

This sale is part of Embracer’s efforts to streamline operations and reduce costs, following setbacks like the cancellation of a major deal in 2023. Saber Interactive’s upcoming projects, including the Star Wars remake and Jurassic Park: Survival, will continue under its new ownership.