Embracer Group is breaking into 3 smaller companies... lol who saw this coming, what a joke

[Space Lynx]

Embracer will split into three companies, including Middle-earth & Friends

Famed mass-layoff-manufacturing corporation Embracer Group are dividing into three companies, which will be listed sepa…

www.rockpapershotgun.com

gobble up every company, assure everything will be fine, can't handle it after all, and break apart into 3 smaller companies. lol hey everyone don't worry, just get an MBA and get those six figures even though you have no idea what you are doing, cause our society rewards MBA's instead of actual logic and reason. lol garbage

 

[ty_ger]

Never heard of them.

 

[cvaldes]

Never heard of them.

They used to be called Nordic Games up until 2019 when they renamed to Embracer.

Here's a short profile:

Company:Embracer Group - PCGamingWiki PCGW - bugs, fixes, crashes, mods, guides and improvements for every PC game

www.pcgamingwiki.com

As you can see they own Aspyr (some of the Star Wars titles), Crystal Dynamics (some of the Tomb Raider titles) and Eidos-Montreal (a few Tomb Raider titles, some Marvel titles, Deux Ex).

What Space Lynx conveniently left out was the part that Embracer had a tentative billion dollar investment deal with Saudi Arabia that fell through at the 11th hour which led to much of the company's asset selloff.

My main question is why the Embracer CEO Lars Wingefors is still at the helm. He has destroyed shareholder value in a massive way, not just here but multiple times in multiple ways, including but not limited to massive employee layoffs.

 

[Space Lynx]

Never heard of them.

they bought everyone in the industry up, then canceled a lot of the games we wanted, cause MBA's are smart. they canceled the newest Deus Ex game for example, and gutted some of our other favorite titles... terrible company.

What Space Lynx conveniently left out was the part that Embracer had a tentative billion dollar investment deal with Saudi Arabia that fell through at the 11th hour which led to much of the company's asset selloff.

I actually didn't know this part. None the less, it just proves my original point even more, Embracer Group was a shitty idea, with shitty mba's, they ruined a lot of future games.

 

[cvaldes]

I actually didn't know this part. None the less, it just proves my original point even more, Embracer Group was a shitty idea, with shitty mba's, they ruined a lot of future games.

It was heavily covered by the videogame media when their well heeled partners pulled out in May. Like front page, first story above the fold stuff. Originally the identity of the mysterious investor was not known but the truth came to light in August of last year:

Saudi group reportedly abandoned $2 billion deal with the Lord of the Rings game company

The Saudi government has been moving into gaming.

www.theverge.com

The videogame media dwelled for this for days after.

Embracer Group was not some quick back-of-the-napkin hustle. They were an established gaming company (THQ Nordic and Nordic Games) years before they took up the Embracer name.

 

[Space Lynx]

It was heavily covered by the videogame media when the Saudis pulled out. Like front page, first story above the fold stuff.

I don't check the news every day it's not healthy to do so. In fact I make it a goal to unplug from everything for an entire week once per year or so, it's very refreshing. So perhaps I missed it around that time, I don't know. I don't know why it matters? It helps my argument...

 

[cvaldes]

I don't read every scrap of news either but if you're going to openly bash a company and explain the circumstances of its action, you might want to do a little research first. It's not like any of this is hidden.

Even a cursory glance at the Embracer Group Wikipedia entry would have spelled it out.

I'm not even sure Lars Wingefors has an MBA. He's more of a hustler (or entrepreneur if you prefer that term). He made the critical error of spending money he didn't have in the bank account (about $2 billion) during his videogame company acquisition spree. If he has spent maybe $200 million I'm sure someone would have stepped up to loan him the money. But not $2 billion. That's the reason for the firesale, layoffs, cancelled games, and other sundry unpleasantries.

But the videogame industry has no lack of incompetent dirtbag CEOs and senior management. And the perpetually immature videogame audience doesn't really seem to care.

If gamers actually cared a little more about who was running the companies who write their games, they might actually get better content. It's possible. Look at Nintendo. Look at Capcom. Neither are perfect but they are better run companies than 99% of gaming companies elsewhere on this planet.

 

[Space Lynx]

I'm not even sure Lars Wingefors has an MBA. He's more of a hustler (or entrepreneur if you prefer that term). He made the critical error of spending money he didn't have in the bank account (about $2 billion) during his videogame company acquisition spree. If he has spent maybe $200 million I'm sure someone would have stepped up to loan him the money. But not $2 billion. That's the reason for the firesale, layoffs, cancelled games, and other sundry unpleasantries.

yeah MBA in a negative sense is a generic term that is an analogy for all these types of CEO's, so again, unsure what your point is (it doesn't matter if he has one or not, he inevitably employs plenty of them) - I know English is not your first langauge, but I know most of my friends knew what I meant when I referred to MBA in that way. it's common here that they get paid a fuck ton and screw up companies for short term maximum profits, and in long term it collapses, because they don't care, lack reason, logic, or something.

and saudia arabia funding is a major red flag in my eyes

 

[cvaldes]

At long last, Embracer CEO Lars Wingefors is accepting much of the criticism leveled at him:

Embracer CEO Lars Wingefors: "I'm sure I deserve a lot of criticism"

Sign up for the GI Daily here to get the biggest news straight to your inboxLars Wingefors, CEO of the Embracer Group, …

www.gamesindustry.biz

I still don't understand why the shareholders haven't kicked him out for destroying equity. I know he has partial ownership but definitely not a majority percentage. He should have been kicked to the curb a year ago when the $2 billion investment deal fell through.

But his investors are spineless cowards, allowing him to stay resulting layoffs, selloffs, bad morale, cancelled games, and more. And it got worse, his ill-advised recent acquisition of tabletop game maker Asmodee put the company deeply into debt which is likely the reason why they are breaking up the company into three entities.

Wingefors exemplifies much that is utterly broken in the videogame industry of 2024. Kinda Funny CEO Greg Miller understands this: "The Embracer Group are here," adding: "They've really f***ed up this place, haven't they?" He wasn't joking. I'm pretty sure he was laughing because he isn't a direct report to Lars Wingefors.

 

[dirtyferret]

My main question is why the Embracer CEO Lars Wingefors is still at the helm. He has destroyed shareholder value in a massive way, not just here but multiple times in multiple ways, including but not limited to massive employee layoffs.

So the man is due for a bonus?

It was heavily covered by the videogame media when their well heeled partners pulled out in May. Like front page, first story above the fold stuff. Originally the identity of the mysterious investor was not known but the truth came to light in August of last year:

and saudia arabia funding is a major red flag in my eyes

Savvy Gaming Group (SA "Public" Investment Fund) have put over $4b into the video game market acquiring shares in EA, take 2, Activision, and Capcom among others. They supposedly invested $1b into Embracer but backed out of another $2B. Saudis have been diversifying investments for years so their money isn't all wrapped up in oil and volatile.

 

[Vayra86]

Embrace the change, I guess then?
Irony couldn't be greater

 

[remixedcat]

embrace the next chapter...11