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

DForce

Member


”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 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).
 
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boom smile GIF
 

lh032

I cry about Xbox and hate PlayStation.
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.
 
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SZips

Member
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.
 

DukeNukem00

Banned
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
 

Menzies

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

Would this impact Perfect Dark?
 
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
 
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Ozriel

Member
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.
 
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.
 
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