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[DForce]

”We are thrilled to welcome these studios into the Embracer Group. We recognize the fantastic IP, world class creative talent, and track record of excellence that have been demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and become a great part of Embracer,” says Lars Wingefors, Co-founder and Group CEO, Embracer Group.

”Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment,” says Phil Rogers, Square Enix America and Europe CEO.


Background and rationale

The collection of studios represents a world-class creative team of ~1,100 employees across three studios and eight global locations, including two of the most reputable AAA studios across the industry in Crystal Dynamics and Eidos Montréal. The studios possess a unique ability to deliver blockbuster hits decade after decade. The acquisition brings a compelling pipeline of new installments from beloved franchises and original IPs, including a new Tomb Raider game. The acquisition builds on Embracer’s mission of creating a leading independent global gaming and entertainment ecosystem. Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities.

Embracer Group enters into an agreement to acquire Eidos, Crystal Dynamics, and Square Enix Montréal amongst other assets - Embracer Group

Embracer Group AB (”Embracer”) has entered into an agreement to acquire the development studios Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a catalogue of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalogue games from SQUARE ENIX HOLDINGS...

embracer.com

Embracer Group AB (”Embracer”) has entered into an agreement to acquire the development studios Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a catalogue of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalogue games from SQUARE ENIX HOLDINGS CO., LTD. (“Square Enix Holdings”). In total, the acquisition includes ~1,100 employees across three studios and eight global locations. The total purchase price amounts to USD 300 million on a cash and debt free basis, to be paid in full at closing. Embracer has secured additional long-term debt funding commitments for this and other transactions in the pipeline. The company today reiterates its current Operational EBIT forecast for FY 21/22, FY 22/23, and FY 23/24. The transaction is subject to various regulatory and other external approvals and is expected to close during the second quarter of Embracer’s financial year 22/23 (July-September 2022).

 

[Futaleufu]

Good, time for Kane & Lynch 3

 

[Bernd Lauert]

 

[Warablo]

Please keep Deus Ex alive

Also, 300 million seems kinda cheap

 

[Wohc]

Better than Sony or Microsoft i guess.

 

[lh032]

Well, at least these games would still stay multiplatform (unless theres time exclusive or special partnership going on)


Oh, and im surprised they did not get outbid by Microsoft according to certain group of people.

 

[reksveks]

For 300m?

Thats a great deal imo.

Wonder if anyone will put in an offer.

 

[Jaguar Victory]

MS has their hands tied with ACTI right now. I think they would have been all over this otherwise. Regulatory pressure. Can't afford to look like the big bad right now.

 

[ckaneo]

Huh? Why did no one else buy them? Maybe they were worried about regulators?

 

[kyliethicc]

Weird

 

[kanjobazooie]

Goodbye weeb publisher, hello eurojank publisher.

 

[whyman]

Perfect fit for embracer. They like to release old games on new platforms, remasters and new titles for popular IP.

 

[Craig of War]

Well atleast with this it will still be on all platform and this shows that Square is willing to sell so Sony can get Square Enix Japan

 

[bitbydeath]

Pretty crazy, this is a bigger buy than Activision and only cost 300M!!!

 

[SZips]

Please keep Deus Ex alive

Also, 300 million seems kinda cheap

A-fucking-greed!

I've been replaying Human Revolution, Mankind Divided, and all their DLC over the past couple of weeks and I've been pining for a new Deus Ex game something fierce as a result.

I hope Embracer embraces (heh) a new Deus Ex game. Under Square Enix and their "this game must sell 50 billion copies or it's a failure!" mentality, I just didn't see them greenlighting one any time soon.

 

[Little Chicken]

Wow this is a way better deal than the $4 billion Sony paid for Bungie.

 

[reksveks]

Pretty crazy, this is a bigger buy than Activision and only cost 300M!!!

It's not really.

I would be interested to see how much profit those studios made SE really?

 

[Vognerful]

Embracer group are like

 

[Craig of War]

Wow this is a way better deal than the $4 billion Sony paid for Bungie.

Not really Destiny IP alone is worth 4-5 times more then all of this

 

[kadab]

300 mil?

 

[pasterpl]

Pretty crazy, this is a bigger buy than Activision and only cost 300M!!!

Bigger? How? In what way?

 

[TheDarkPhantom]

Wow, I'm just happy it isn't the Chinese. Give me a Blood Omen remaster and then a sequel, Soul Reaver too.

 

[Helghan]

I'm pretty sure this Embracer group is thinking about being bought within the next 5 years for a huge multiple of what they are worth now by Sony, Tencent or Microsoft. And that this is actually their only reason for starting the Embracer group.

 

[bitbydeath]

It's not really.

I would be interested to see how much profit those studios made SE really?

The IP sold here is amazing.

 

[Little Chicken]

Not really Destiny IP alone is worth 4-5 times more then all of this

For one IP that will remain multiplat... Embracer just picked up several iconic IPs for peanuts in comparison.

 

[bitbydeath]

Bigger? How? In what way?

Games, good variety and massive IP potential.

 

[Ozriel]

Pretty crazy, this is a bigger buy than Activision and only cost 300M!!!

Joke post?

 

[Craig of War]

For one IP that will remain multiplat... Embracer just picked up several iconic IPs for peanuts in comparison.

Company don't care if it Multiplatform you have to remember they are not exclusive crazy like fanboys lol they are in it to make money that it

 

[DukeNukem00]

Better than Sony or Microsoft i guess.

Better than Sony because games would not be confined to playstation, but certainly not better than microsoft. Microsoft would have had the games on every platform and device (outside playstation) plus large budgets and support. Embracer seems to like to things on the very cheap side as far as productions go. If we'll get new games in these franchises you can forget them being these lavish top tier productions that they were

 

[reksveks]

The IP sold here is amazing.

The IP was amazing but the only one that I think has really pull currently is Tomb Raider.

The rest would need some serious marketing budgets behind it.

 

[bitbydeath]

Joke post?

Definitely not.

 

[Kerotan]

More Deus ex!

Thankfully it wasn't MS. Hopefully Sony acquire SE Japan and it will be 300M cheaper to buy aswell!

 

[kyoji]

Square cleaning house before the merger with playstation, good move.

 

[reksveks]

More Deus ex!

Thankfully it wasn't MS. Hopefully Sony acquire SE Japan and it will be 300M cheaper to buy aswell!

That's not how it works.

 

[bitbydeath]

The IP was amazing but the only one that I think has really pull currently is Tomb Raider.

The rest would need some serious marketing budgets behind it.

They all have really great potential given the right budget.

 

[Menzies]

Wow, yeah I’m also thinking Microsoft can’t move in the M&A space until Activision goes through.

Would this impact Perfect Dark?

 

[reksveks]

All hail the NFTs

 

[Borowski_1]

Square cleaning house before the merger with playstation, good move.

Why wouldnt Sony be interested in Tomb Raider, Deus EX and the studios?

Plus, it's only 300M

It won’t change the price of SE

 

[Bernd Lauert]

Would this impact Perfect Dark?

Don't think so, all current agreements will likely stay intact.

 

[Jennings]

Better than Sony or Microsoft i guess.

They're buying Embracer a bit after this deal closes.

 

[Thief1987]

Looks like Square didn't know what to do with their western wing anymore, and they were glad to ditch it hence the pretty low price.

 

[reksveks]

 

[Craig of War]

300M is very low to put this deal into perspective

EA Bought Codemaster for 1.2 billion
Embracer bought GearBox for 1.3 billion

So looking at this again i don't know what the hell Square is smoking by selling for only 300M
Sony need to buy the rest of Square Enix Japan they probably going for cheap lol

 

[BaneIsPain]

Damn. Dropping bomb like a boss.

 

[YCoCg]

Jeez the Marvel games really were the touch of death for them, before The Avengers they would've fetched a much higher price.

 

[Ozriel]

300M is very low to put this deal into perspective

EA Bought Codemaster for 1.2 billion
Embracer bought GearBox for 1.3 billion

So looking at this again i don't know what the hell Square is smoking by selling for only 300M
Sony need to buy the rest of Square Enix Japan they probably going for cheap lol

I’m not sure Codemasters and Gearbox had a history of making losses.

 

[Baki]

At that price point, I’m surprised no one else was interested.

 

[I'm nobody]

If wb is for sale it's deffo looking like Sony buy now

 

[bitbydeath]

At that price point, I’m surprised no one else was interested.

Yeah, Sony should have pounced for the Tomb Raider movie rights, maybe they’re tied up with something too?

 

[Bernd Lauert]

300M is very low to put this deal into perspective

EA Bought Codemaster for 1.2 billion
Embracer bought GearBox for 1.3 billion

So looking at this again i don't know what the hell Square is smoking by selling for only 300M
Sony need to buy the rest of Square Enix Japan they probably going for cheap lol

Codemasters came with some high profile licenses like F1 and WRC.