Whoever wants to buy the company and its studios should be prepared to pay a substantial sum.

 

It was first reported that Saber Interactive would be bought by Beacon Interactive for $247 million. This company is headed by Matthew Karch, co-founder of Saber. However, there is a letter from Karch obtained by Bloomberg’s Jason Schreier (who also wrote about this back in February) that says that 4A Games and Zen Studios are coming along with Saber, so that double the original amount, around $500 million, will be paid for the transaction. The letter also said that this would mean that about 3,000 developers would leave Embracer Group.

Embracer Group will suspend its operations in Russia as part of the sale, which will improve the company’s cash flow, reduce capital expenditures, net debt and future liabilities. In addition to all of Saber’s studios, the package includes DIGIC, Fractured Byte, Mad Head Games, New World Interactive, Nimble Giant Entertainment, Sandbox Strategies, Slipgate Ironworks, and 3D Realms, as well as SPL, Stuntworks, Bytex, 4A Games, and Zen Studios, according to Karch’s letter. Embracer subsidiary Plaion will retain long-term licensing and publishing rights to the Metro franchise.

The pipeline of studios retained by Embracer Group includes the next AAA game from 4A Games, an unannounced AAA game in concept stage, a previously announced AAA game based on a major license, a new AAA multiplayer shooter based on a controlled IP, a new AA game based on an Asmodee intellectual property, a new AA game from 34BigThings based on an owned intellectual property, Killing Floor III, post-launch support for Teardown, and the entire upcoming pipeline and back catalog of Zen Studios, Aspyr, and Tripwire Interactive.

In a letter to staff obtained by Bloomberg News, new Saber CEO Matt Karch confirms that they’ve already decided to take 4A and Zen, despite messaging from Embracer suggesting that it may retain the two studios: pic.twitter.com/RtYVL9qUUJ

— Jason Schreier (@jasonschreier) March 14, 2024

I have received a lot of questions concerning the status of some of our previously announced projects now that Saber has separated from Embracer. I'm happy to confirm we're still working on a number of titles, including Warhammer 40,000: Space Marine 2, John Carpenter's Toxic… pic.twitter.com/s063LxKz0X

— Tim Willits (@TimWillits) March 14, 2024

Lars Wingefors, co-founder and CEO of Embracer Group, said in a press release, “I am pleased that we have found a win-win solution for Embracer and the parts of Saber that are now leaving us. This transaction puts both companies in a stronger position for the future. Embracer is now able to close all operations in Russia, as previously decided by the Board of Directors, while preserving many engineering jobs under new independent ownership. At the same time, we retain key businesses, valuable IP and future publishing rights. Cash flow is immediately improved and we remain committed to reducing net debt. The transaction provides additional headroom for debt repayment under existing bank agreements and will improve financial flexibility. This is the first transaction of the aforementioned structured processes and marks a small but important step in our journey to transform Embracer into the future for the benefit of all employees, gamers and shareholders.”

Matthew Karch, co-founder of Saber Interactive and principal of Beacon Interactive, added: “Over the past four years, I have been proud to be a part of Embracer’s amazing transformation into one of the world’s leading gaming companies. As part of the company’s efforts to reorganize for a changing industry and geopolitical challenges, we both felt it was the right decision for both Embracer and the core of Saber to part ways. This sale leaves both parties in a much better position to grow our respective businesses. I will remain a large, long-term shareholder in Embracer, and we will remain partners on several current and future projects. This transaction also secures the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades.

On Twitter, Tim Willits, Saber’s COO, confirmed that Warhammer 40,000: Space Marine 2, John Carpenter’s Toxic Commando and Jurassic Park: Survival are still in development. Warhammer 40K received a major delay in November to September 9, John Carpenter’s Toxic Commando is a co-op zombie-killing FPS on Saber’s Swarm Engine and will be released this year for PlayStation 5, Xbox series and PC, and Jurassic Park: Survival, announced in December, is a single-player action-adventure game set after the events of Steven Spielberg’s 1993 film.

We wish the teams and developers involved the best of luck.

Source: Gematsu, VGC, Embracer Group,