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Embracer Group AB, a highly controversial Swedish gaming company, has started to sell off a wider portfolio of internal development studios—Jason Schreier (via Bloomberg) reported on speculative details late last month, but some of the suggested/initial numbers have changed since then. Yesterday, web sleuths noticed that Saber Interactive's official site no longer sports any references to Embracer. The latter has just announced—to investors—that Saber is being sold to Beacon Interactive (a private investment collective). Interestingly, this organization was started by Matthew Karch; a Saber Interactive co-founder. Their agreement signals Embracer's withdrawal from Russian territories—this morning's financial call revealed that this decision will assist in the reduction of the company's "geopolitical risk."
The latest announcement did not mention Gearbox Entertainment—Embracer will retain ownership of several studios, but the Borderlands developer is expected to be sold off in the near future. Insiders reckon that Embracer leadership was weighing up options as far back as last September, following a period of financial insecurity. Returning to the present day—Lars Wingefors, co-founder and Group CEO of Embracer stated: "I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us. This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt."
Matthew Karch, co-founder of Saber Interactive and director of Beacon Interactive stated: "Over the past four years, I have been proud to be part of Embracer's amazing transformation into one of the leading game companies in the world. As part of the company's efforts to reorganize for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. 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."
View at TechPowerUp Main Site | Source
The latest announcement did not mention Gearbox Entertainment—Embracer will retain ownership of several studios, but the Borderlands developer is expected to be sold off in the near future. Insiders reckon that Embracer leadership was weighing up options as far back as last September, following a period of financial insecurity. Returning to the present day—Lars Wingefors, co-founder and Group CEO of Embracer stated: "I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us. This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt."
Matthew Karch, co-founder of Saber Interactive and director of Beacon Interactive stated: "Over the past four years, I have been proud to be part of Embracer's amazing transformation into one of the leading game companies in the world. As part of the company's efforts to reorganize for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. 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."
View at TechPowerUp Main Site | Source
