Embracer group, The planet-eating mass of video game publishers already includes the likes of Gearbox and THQ NordicTonight, I announced a deal to purchase a number of studios and storied properties from Square Enix.
While the purchase isn’t final — this is just an “agreement to get it” until everything is signed later in the year — the announcement press release says that, if approved, it will be a $300 million deal. For $300 million, Embracer will receive:
- Studios Crystal Dynamics, Eidos Montreal, and Square Enix Montreal (which are supposed to be waiting for a name change), have about 1,100 employees worldwide.
- “Catalog of IP Addresses” owned and/or operated by those studios, including The former godAnd Tomb riderAnd Thief, Legacy Ken and “the studio’s ongoing sales and operations of more than 50 back catalog games.” Also interesting: “Crystal Dynamics is actively working on several AAA projects, including the next major Tomb Raider game that will deliver the next generation of storytelling and gameplay experiences.”
Square Enix bought Eidos (and Crystal Dynamics with it) in 2009, while initially supervising them A number of well-received restarts from a series like Tomb rider And The former godand subsequent games in those properties, along with licensed efforts such as Avengers And Guardians of the Galaxy– their property It’s become something of a meme in recent years, so no matter how high their review scores are, or how many copies they’ll sell, Square Enix will always say games are “under-performing.”.
Perhaps knowing that the first question most people would ask to pursue a deal like this would be “So what’s going on with this chain?” Embracer’s press release says:
The acquisition brings a compelling pipeline of new installments of beloved franchises and original IP addresses, including new Tomb rider Game. The acquisition builds on Embracer’s mission to create an independent global ecosystem for games and entertainment. Embracer has been particularly impressed with the studio’s rich portfolio of original IP, featuring brands with proven global capabilities such as Tomb rider And The former god, as well as demonstrating the ability to create AAA games with a large and growing fan base. There are compelling opportunities to grow studios organically to maximize their commercial opportunities.
Which is mysterious, but still more hopeful for fans of something like The former god From Square Enix’s utter silence and neglect in recent years. The purchase is expected to be completed during the second quarter of Embracer’s fiscal year 22/23 (July-September 2022).
Note that Embracer just spent $1.3 billion on Gearbox. to get all This is amazingFrom experienced studios to beloved real estate for a billion dollars less…sounds like a steal.
So why sell? Square Enix press release says:
The transaction will help the company adapt to the ongoing changes in the global business environment by creating a more efficient allocation of resources, which will enhance the company’s value by accelerating growth in the company’s core business in digital entertainment. In addition, the deal enables the launch of new businesses by moving forward with investments in areas including blockchain, artificial intelligence, and cloud.
Imagine having to put in your resume that you sold Tomb rider To at least partially fund some of the blockchain nonsense.
“Award-winning troublemaker. General entrepreneur. Hipster-friendly analyst.”