Saber Interactive has parted ways with Embracer Group, buying back the rights to its own work as well as much of its network of studios and contractors.
Saber co-founder Matthew Karch recently formed Beacon Interactive, a holding company funded by private investors that has purchased Saber, alongside many of its subsidiaries, for a whopping $247 million (via VGC). The purchased companies account for over 3,000 developers and include Mad Head, DIGIC, Nimble Giant, Fractured Byte, Slipgate, 3D Realms, New World Interactive, SPL, Stuntworks, Bytex, 4A Games and Zen Studios. However, Zen and 4A are subject to an option to buy within a certain time period - with these included, however, the purchase price rockets up to around $500 million if you include the value of the shares and liabilities being exchanged too.
In a letter obtained by Bloomberg News and posted on X (formerly known as Twitter) by journalist Jason Schreier, Karch outlined his thoughts on the move.
"We have decided precisely on these studios for acquisition because we believe they represent the best of what Saber is and can be. This group comprises some of the most talented and creative developers in the world. Our track record and more importantly the projects we have in development speak volumes about our capabilities. I truly believe that we currently have the best collection of game developers in the industry thanks to all of you."
Embracer’s official announcement of the deal is a little misleading. Saber is actually bringing along 4A Games (Metro) and Zen Studios (Pinball) through options, which (combined with liabilities) amounts to a purchase price of around $500 million as Bloomberg reported last month https://t.co/3Pj0TQ5FStMarch 14, 2024
For those not in the know, Saber Interactive is currently overseeing over 38 projects, including Warhammer 40,000 Space Marine 2 and a remake of the classic sci-fi role-playing game (RPG) Knights of the Old Republic.
This transaction also marks an end to Embracer's operations in Russia.
Embracer CEO Lars Wingefors called the move a "win-win solution for Embracer and the parts of Saber that will now leave us. This transaction puts both companies in a stronger position to thrive going forward [...] Cash flow is immediately improved, and we remain committed to reducing net debt. The transaction yields additional headroom to amortize debt in accordance with existing bank agreements and will improve financial flexibility."
Embracer 'restructuring' over the past six months has resulted in a large number of job losses with over 900 employees impacted between the months of September and November alone.
Hopefully, this transaction spells a move from Embracer towards more sustainable business practices.
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