Embracer Group: The Restructuring Is Over, No Acquisitions For Now

General news News 04/05/2024

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The Swedish-headquartered conglomerate led by Lars Wingefors may finally be done selling off its studios (Saber Interactive: it became independent and its CEO Matthew Karch took the reins; Gearbox Entertainment Company: it moved to Take-Two), shutting down (there are many examples, to name just one: Volition), and possibly not resorting to layoffs anytime soon.

Embracer Group had planned a $2 billion “transformative” licensing deal with Saudi Arabia’s Savvy Games Group, but the deal fell through at the finish line, sending Embracer’s stock value plummeting and the company into a restructuring process. This led to the sale of studios, closures and layoffs. However, it seems that this is over, at least in the short term, because during the investor call after the sale of Gearbox, Embracer CEO Lars Wingefors finally gave some positive news after a long time.

“We are now completing the restructuring program at the end of March, and the Gearbox restructuring process was part of that program. Now we are being approached, I would say not quite on a daily basis, but on a weekly basis, by companies that would like to acquire certain assets within the Group. And I’ve been very clear that they are not for sale because they are a very important part of the Group and the shareholders of the Group going forward. In terms of doing more mergers and acquisitions, I think it’s much too early to talk about restarting the M&A engines.

Right now we’re in the late stages of looking at the future of the Group and that’s our main focus and priority – how we build and structure ourselves, how we use the assets we have within the Group and how we get them to work together and how we get them to work better together, using different functions, I think that’s our focus right now, to increase profitability and cash flow generation just by making better products and games,” Wingefors said.

The question is how much they will push the Lord of the Rings IP, as Embracer has said in the past that they will put more emphasis on it…

Source: WCCFTech

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Angyal Anikó

Anikó, our news editor and communication manager, is more interested in the business side of the gaming industry. She worked at banks, and she has a vast knowledge of business life. Still, she likes puzzle and story-oriented games, like Sherlock Holmes: Crimes & Punishments, which is her favourite title. She also played The Sims 3, but after accidentally killing a whole sim family, swore not to play it again. (For our office address, email and phone number check out our IMPRESSUM)