Embracer Group Stocks Plummet After Failed Partnership Deal Negotiations Cost Company An Estimated $2 Billion

Embracer hit an all time low.

Troy Blackburn
By Troy Blackburn, News Editor Posted:
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Embracer group stock plummets

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.

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In this article: Embracer Group.

About the Author

Troy Blackburn
Troy Blackburn, News Editor
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.

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