June 3, 2023

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The gaming CEO is devastated after a $2 billion real-time deal collapses

Lars Wingfors, CEO of Embracer Group, looked downhearted during the latest earnings presentation for his gaming giant. Despite the recent acquisition of Game Studios ex god And Tomb rider in a bargainAnd Dead Island 2 Release strong sales and good reviews, own rights now the Lord of the RingsEmbracer stock is in the tank today after it was revealed that the company lost a $2 billion game development deal at the last minute last night.

“As of late last night, we had an amazing cash flow because of that deal,” Wingefors said He said Amid heavy sighs, pregnant women stopped during a May 24 question and answer session. Without naming the company that backed out of the $2 billion partnership, he said Embracer has “a really strong commitment” from someone you trust. in press release He wrote that the agreement was going to transform the company and “set a new standard for the gaming industry”.

For years now, Embracer Grab every little publisher and game studio could find. In 2020, Saber Interactive (world war z). In 2021 Gearbox Entertainment (Borderlands). And in 2022 Crystal Dynamics (Tomb rider) and Eidos Montreal (ex godAnd thief). Sometimes the results have been mixed. Last few years saints row The reboot had its moments however Released in unfortunate condition. Sometimes the problem is solved. Dead Island 2which spent years in development hell being traded from one studio to another, came out last month and it has been Actually very decent.

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The big question now is who Embracer was planning to partner with and for what. Wingefors said the company has been working on the deal since last fall, with hundreds of specialists from both sides involved, and has a strong belief it will all work out despite some logistical challenges. The list of companies likely to incur a $2 billion commitment is very small.

Sony, with its penchant for PS5 exclusives, is one possibility. Microsoft desperately needed it New blockbuster movies for Game Passis another (Crystal Dynamics is also currently involved in first-party Xbox exclusives, Complete darkness). Huge Chinese conglomerates like NetEase and Tencent might also fit in, or perhaps even US tech giants like Amazon or Netflix, both of which are trying to add game content to their streaming and entertainment businesses. Embracer has bought the rights the Lord of the Rings compared to $ 770 million last Augustright before the start of talks on the deal, apparently.

Whoever ghosted Embracer, the Swedish holding company was left in a difficult position. Its share price fell about 45 percent in a single day after the news. It is also experiencing a number of internal delays in the game. remake of Star Wars: Knights of the Old Republic Originally in production at Aspyr, the Austin-based Embracer was acquired for $450 million in 2021 and was reportedly in trouble as of last year. We also deserve another metro A shooter from 4A Games, although the studio is based in Kiev, Ukraine where the war with Russia is now in its second year.

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