Back in May, we reported on Embracer Group's stock plummeting 40% when a potential partnership deal worth $2 billion fell through. At the time the potential partner remained a mystery, but now it looks like we know who that partner was supposed to be.
Axios is reporting that the partner was the Saudi government-funded Savvy Games. Axios learned this information from a source who is not allowed to speak on the matter publicly.
The Saudi government has planned to invest $38 billion in the video game industry, so they seem a very likely partner for such a deal. Embracer Group had announced that a verbal agreement was reached last October, and the paperwork was supposedly ready to sign, but at the last minute Savvy Games backed out of the deal. The source for the story was clear about who the deal was with but wasn't certain of Savvy Games' reason for walking away from it.
The failed deal has reportedly delayed many high-budget game projects following its collapse, and Embracer has promised cost reductions to its investors. That, of course, usually means layoffs.
- Embracer Group Addresses Financial Challenges With Three-Step Plan That Will Entail "Difficult Decisions" (AKA: Probably Layoffs)
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- 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.
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