Several Embracer-owned assets were put up for sale as part of its restructuring program that began in June 2023. Earlier this month, people started discovering the removal of Embracer mentions from Saber Interactive’s website. Embracer has now been confirmed that Saber has now been sold.
During an announcement made to investors on Thursday, March 14, 2024, Embracer Group said the sale of Saber Interactive meant it would cease all its operations in Russia. They also said the deal worth $247 million includes Slipgate Ironworks and 3D Realms, and will help to improve their cash flow.
According to reports, the new owner of Saber Interactive is Beacon Interactive, a group of private investors controlled by Matthew Karch, Saber Interactive’s co-founder. The following studios will be retained by Saber Interactive post-transaction:
- Nimble Giant (Star Trek Infinite)
- 3D Realms (Ion Fury)
- Sandbox Strategies
- New World Interactive (Insurgency)
- Slipgate Ironworks (Graven)
- Mad Head Games (Scars Above)
- Fractured Byte (Borderlands Legendary Collection)
- Digic
The transaction has significantly decreased the number of assets under Embracer’s control. Nevertheless, the Swedish conglomerate will retain ownership of the following studios post-transaction:
- Tripwire (Chivalry)
- Beamdog (Mythforce)
- Tuxedo Labs (Teardown)
- Demiurge
- Shiver (Lucius)
- Aspyr (Star Wars Battlefront Classic Collection)
- Snapshot Games (Phoenix Point)
- 34BigtThings (Redout)
Beacon Interactive also received an option right to acquire 4A (Metro) and Zen Studios (Pinball FX) within a defined time frame for a fixed price. According to a Bloomberg report, the value of the deal could swell to half a billion dollars.
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“Due to commercial reasons, the parties have agreed not to disclose full terms,” Thursday’s announcement reads. “The Board of Embracer is, however, confident that the exercise price stipulated in the option right reflects at least the studios’ market value and is significantly higher than the current net book value (including goodwill) of USD 81 million (SEK 829 million).”
One interesting clause in the deal is that Embracer’s Plaion Group will retain all current and future Metro publishing rights for PCs and consoles, even if Beacon Interactive decides to exercise their option rights and acquire 4A.
There were pointers leading to the official announcement of Saber Interactive’s sale
Before the official announcement of Saber Interactive’s sale, several people noted changes to their website. For example, the site’s bio previously read: “Saber Interactive is a US-based developer and publisher of video games. Consisting of over 20 studios and more than 2,500 employees worldwide, we are one of the key operative business units of Embracer Group.”
However, sometime last week the bio was updated to read: “Saber Interactive is a US-based developer and publisher of video games. Consisting of over 20 studios and more than 2,500 employees worldwide.”
That update suggested something might have happened, even when there was no word from the company. Speaking about the sale of Saber Interactive, Embracer’s CEO Lars Wingefors said, “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. The transaction yields additional headroom to amortize debt in accordance with existing bank agreements and will improve financial flexibility.
“This is the first transaction of the previously mentioned 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.”
Karch said he will remain an Embracer shareholder
Reacting to the split from Embracer, Karch said he was proud to have been part of Embracer’s growth into one of the leading game companies in the last four years. He said the decision for Embracer and the core of Saber to part ways due to geopolitical challenges and changed industry was the right decision.
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“This divestment leaves both parties in much better positions to grow our respective businesses,” Karch said. “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.”
Embracer’s restructuring program has led to 1,387 job cuts since the summer of last year. Last month, Embracer confirmed that it canceled 29 unannounced titles in the second half of last year.
