Embracer Group And Saber Interactive Part Ways In Deal Reportedly Worth $500 Million

Embracer Group and Saber Interactive have officially parted, as a group of private investors purchased the game developer in a deal currently valued at $247 million. Private investors in the Beacon Interactive group--an organization founded and controlled by Saber Interactive co-founder Matthew Karch--purchased the company, and Embracer added that it'll also cease all operations in Russia.

This deal will see Saber Interactive retain control of several of its studios, while Embracer Group will hold onto the rest. Nimble Giant, 3D Realms, Sandbox Strategies, and several other studios will remain with Saber Interactive, while Embracer Group will retain studios like Aspyr and Beamdog.

Saber Interactive also had the option to purchase Metro developer 4A Games and Pinball FX developer Zen Studios--and new CEO Matt Karch has reportedly already done so via stock options--increasing the true value of the purchase price to around $500 million, according to Bloomberg's Jason Schreier.

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

Embracer will also retain publishing rights to 14 games currently in development at Saber, as well as two joint projects with Beacon Interactive. These include 4A Games' next AAA project and a previously announced game, possibly Warhammer 40,000: Space Marine 2 or Aspyr's Star Wars: Knights of the Old Republic remake, provided the latter hasn't been canceled. Killing Floor 3, Teardown, several more AAA and AA games, present and future Metro games, and the full upcoming pipeline and back catalog from Zen Studios, Aspyr, and Tripwire will also continue to be published by Embracer.

"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," Embracer boss Lars Wingefors said in a statement announcing the deal.

After going on a massive buying spree over several years, Embracer began to initiate massive cost-cutting procedures--similar to other video game industry layoffs--in the wake of an alleged $2 billion investment from a Saudi-backed fund falling through. In the last six months, the company confirmed it had canceled 29 unannounced games and laid off nearly 1,400 people.

A new Deus Ex game was reportedly canceled, while Saints Row studio Volition and TimeSplitters developer Free Radical have been shut down by Embracer's cost-cutting measures. Hundreds of other game developers have been laid off and Borderlands studio Gearbox Entertainment is rumored to be up for sale, if Embracer can find a buyer.