Reports of Embracer Group selling off Saber Interactive first popped up a few weeks ago, and today, the company has officially confirmed the news, with expectations that 4A Games and Zen Studios will also be part of the sale.
In a statement published today by Embracer, the publisher giant confirmed that Saber Interactive will be sold to Beacon Interactive, which is controlled by Saber’s co-founder, Matthew Karch. The company will be sold for $275 million USD, and it will include Nimble Giant, DIGIC, Saber Interactive Inc., Fractured Byte, Sandbox Strategies, Mad Head Games, Slipgate, New World Interactive, and 3D Realms.
Additionally, Embracer is offering 4A Games and Zen Studios as purchasable options for a limited time to Beacon Interactive, though it retains control over the studios for now.
“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,” says Lars Wingefors, co-founder and Group CEO of Embracer.
“Over the past four years, I have been proud to be part of Embracer’s amazing transformation into one of the leading game companies in the world. As part of the company’s efforts to reorganize for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. This divestment leaves both parties in much better positions to grow our respective businesses. 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,” says Matthew Karch, co-founder of Saber Interactive and director of Beacon Interactive.
This is certainly great news, as before this, Embracer has had a string of layoffs and studio closures, leaving thousands jobless over the last year. Though this does not mean that employees from either of the sold studios are protected from being laid off, this news should give employees a bit of a relief knowing that it won’t be directly because of the ongoing restructuring at Embracer.