Following a recent restructuring surge by the Swedish Embracer Group, reports surfaced about the failed closing of a $2 billion deal. These reports came from the well-regarded industry journalist at Bloomberg, Jason Schreier, and the gaming portal Kotaku.
Saber Interactive Sale
In a surprising twist, Embracer Group is reportedly planning to sell one of its major divisions, Saber Interactive, to a group of private investors for about $500 million, according to a source known to Schreier.
Following the deal, Saber is anticipated to transition into a private entity with a workforce of approximately 3,500 employees. The company will persist in its development of the remake of Star Wars: Knights of the Old Republic, which was previously believed to be dead in the water and had been managed by Aspyr until 2022.
A number of studios are likely to be acquired by Saber as part of the deal, including companies like 3D Realms, 4A Games, Aspyr, Beamdog, Slipgate Ironworks, and TripWire Interactive among others under Embracer.
Possible Gearbox Entertainment Separation
Sources from Kotaku also report that another division, Gearbox Entertainment, is also gearing up to break away from Embracer Group. The deal to sell the company is said to be in its final stages but the potential buyer has not been disclosed yet.
Recently, Gearbox’s CEO, Randy Pitchford, announced to the staff that the company’s future had been decided, with more details to come in March. Although he responded to Kotaku’s request for a comment, he neither confirmed nor denied the information regarding the sale.
If these deals come to fruition, they would significantly impact Embracer Group’s ongoing cost-cutting initiative, which has already resulted in job losses for 1,300 employees, closures of seven studios, and cancellation of 29 unannounced games.
