Embracer Group Stocks Plummet After Failed Partnership Deal Negotiations Cost Company An Estimated $2 Billion
Embracer hit an all time low.
Embracer Group has been on an acquisition spree, picking up companies such as Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, Perfect World, and a catalog of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain, and more. Hell, they are the ones that own Middle Earth Enterprises, who worked out a deal with Amazon Games recently to make their MMO.
But one undisclosed potential deal has fallen through and is costing Embracer a ton of money.
"Late last night, we were informed that one major strategic partnership that has been negotiated for seven months will not materialize," Embracer said in a statement according to Reuters.
The deal that did not materialize has caused shares in Embracer to plummet 40%, an all-time low for the company. The deal was worth an estimated $2 billion in contracted development revenue over six years.
"The deal would have enabled a catch-up payment at closing for already capitalized costs for a range of large-budget games, but also notably improved medium-to-long-term profit and cash flow predictability for the duration of the game development projects."
Embracer has said that this deal falling through has caused the postponement of a number of planned releases for games under development, cutting its profit forecast for the current year by 3-5 billion Swedish crowns (Krona).
There's no word as of the time of this writing on who the potential partner was.
Related Articles
- Embracer Group Addresses Financial Challenges With Three-Step Plan That Will Entail "Difficult Decisions" (AKA: Probably Layoffs)
- Always Online Podcast: Throne And Liberty Update, Gearbox, xDefiant & Runescape Changes, & Dauntless CEO Steps Down Ep 489
- Embracer Group May Be Selling Borderlands Studio Gearbox Software
About the Author

Troy “Noobfridge” Blackburn has been reporting on the video game industry for over a decade. Whether it’s news, editorials, gameplay videos, or streams, Noobfridge never fails to present his honest opinion whether those hot takes prove to be popular or not.
Read Next
Meet Dr. Rubilia, Tower Of Fantasy’s Latest Simulacrum
The former head of the Listener Project takes on the role of an Abyssant.
By QuintLyn Bowers - 4 months agoYou May Enjoy
Leaked Footage From Upcoming Skate Reboot Game Shows Parkour Elements
Previous titles allowed players to run on foot, but this suggests a deeper focus on these mechanics.
By Matthew D'Onofrio - 1 week agoThe Elder Scrolls Online (Kinda) Updates Players On The Crown Store Situation
Players are still not pleased.
By QuintLyn Bowers - 1 week agoVindictus Unleashes New Raid With A Boss Monster Who Wields Different Weapons Every Phase
Team up and take on Eisen Ritter.
By Troy Blackburn - 5 days agoTGS 2023: Bethesda Announces The Elder Scrolls Online Coming To Consoles In Japan And Fallout 76 Getting Two Part Update
Japanese players can look forward to fully localized ESO.
By Troy Blackburn - 4 days agoHere's What You Need To Know About The Deceive Inc. Private Lobby Beta Update
Besides lobbies that support up to 12 players, the patch fixes various issues too.
By Matthew D'Onofrio - 4 days agoTomorrow's Update For The Texas Chainsaw Massacre Brings Several Key Adjustments
The patch addresses various issues and gameplay enhancements.
By Matthew D'Onofrio - 1 week ago
Discussion (0)