Embracer Group acquires Eidos, Crystal Dynamics, Square Enix Montreal, and several IP
Embracer Group has made a massive acquisition of Eidos, Crystal Dynamics, Square Enix Montreal, and a bunch of IP including Tomb Raider.
Embracer Group has acquired Square Enix Montreal, Eidos, and Crystal Dymanics and several IP including Tomb Raider for $300 million. The company is set to host a stream about the deal right now.
”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.
The deal is not just for the studios, but Embracer Group has also acquired a catalogue of 50 games including Tomb Raider, Legacy of Kain, Deus Ex, and Thief.
The acquisition is expected to close as early as July of this year. Embracer Group is taking on debt to finance this deal, but they own so many amazing studios that at this point it is hard to be surprised by the size and scope of their deals. Embracer will be forking over $300 million for this deal, and adds a ton of games and studios to their conglomerate.
Embracer Group's CEO Lars Wingefors did say that the company will continue its acqusition spree just two weeks ago, and they still have more liquidity to be able to score some more deals.
Wingefors provided a more detailed breakdown of the deal during the press conference:
- The total purchase price amounts to $300 million on a cash and debt free basis, to be paid in full at closing
- Acquisition includes development studios Crystal Dynamics (HQ: San Mateo, CA, US); Eidos Montreal (Montreal, CA); and Square Enix Montreal (Montreal, CA)
- In total, represents ~1,100 employees across three studios and 8 global locations
- Acquisition includes catalogue of iconic IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain, and others
- More than 50 back-catalogue games
- The transaction is subject to various regulatory and other external approvals and expected to close during the second quarter of Embracer's financial year (July-September 2022
We will be sure to add a link to the press release once Embracer Groups' website stops crashing.
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replyAsif Khan posted a new article, Embracer Group acquires Eidos, Crystal Dynamics, Square Enix Montreal, and several IP
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Oh shit, if this means that Eidos Montreal makes the next Deus Ex game instead of farting about with Marvel wank, I'll be a happy man!
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Aww c'mon, DX:MD was definitely flawed, but it was far from a piece of shit. I really enjoyed my time with it, especially the DLC.
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I always thought Square Enix was making a mistake to try and run Western studios. Some good games were produced, but mostly many good IIs languished or weren’t very well treated.
It pains me to say it, but Squenix is just not a AAA publisher anymore. They’re better off selling off their Japanese studios and IP as well.
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Credit where it's due, squeenix did a fantastic job with FFVII:R.
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I was shocked when they bought them.
I’m not shocked they’ve sold them back off.
I guess that sums it up. :(
I’m happy Legacy of Kain finally has a chance again, at least. The Embracer studios culture could take on various IP very well, including Deus Ex, Thief, maybe even dare we say Anachronox?? I think this is one takeover that may turn out well for the future of the classic IP, for once. -
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I’m no expert but $300m seems cheap for all that talent and IP compared to other recent acquisitions.
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I'm sure they did but I expect Microsoft isn't going to move on anything until the Activision deal is done.
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I think the only real hurdle left for the Activision deal are the regulatory agencies in the US and Europe approving the purchase.
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They are using debt to finance this deal.
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But now who are Square going to release press releases about lower than expected sales for games that sell millions of units?
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I don't think IP's are worth what people think they're worth in general. Studios get bought because of the infrastructure/personal to produce content. Square has been criticising their Western studios for years now, you have to wonder in terms of wage structures and lack of investments how much has been leaking out of those studios.
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While this is true from our point of view. I think gamers place more importance on IPs than what studios do. If you buy a studio just for it's IPs you then have to create a studio to developer those IPs. And studios that produce games for significant profit is what everyone is looking for.
This is why Square Enix sold these studio's "cheap". Their profit margins are super low, even if from a gamers perspective we'd say they've produced good games. Profits were around 3% and less than 1%.
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[..] the Transaction enables [..] investments in fields including blockchain, AI, and the cloud.
https://www.hd.square-enix.com/eng/news/pdf/20220502%20A_Press%20Release_fin.pdf
oh dear -
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When devs go for Walmart bargin-bin prices, lol
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They’re only selling 1,100 employees. Single studios have more employees than that nowadays on one project. I get the feeling many primary members of these teams already left long ago. For just the IP and back catalogue, I think that’s a medium sized price, not a bargain basement cheap price.
It might seem cheap to us old folks, because there are some of our most beloved titles in there, but a new company would have to do some very strategic conceptualizing and budgeting to bring them back to life successfully for new audiences. It’s not an ace in the hole type of acquisition.
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Square Enix said the sale to Embracer "enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud".
*sigh*
FF16 is going to require NFT limit breaks, aint it?
https://www.eurogamer.net/square-enix-sells-off-western-studios-and-ip-including-tomb-raider-and-deus-ex-
jesus christ
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Wow, I would have bet on Sony going after them.
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After the rest, that is. They want dat Final Fantasy.
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This is exactly what I’m thinking: https://twitter.com/Nic5_Cyprus/status/1521035005618757633?s=20&t=ToeGOjIB72UOFsGoAXMS5A
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I'm not sure how to feel about this one. It's totally possible these studios could get new life with a new owner. It could also go the other way where these IPs are exploited in a way that ain't cool. Interesting for sure.
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Honestly, I wish MS had done this deal instead of the Activision deal. At 300 million this seems like a massive bargain. Plus you get none of the baggage.
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Considering MS is using Crystal Dynamics to work on the new Perfect Dark I would be shocked if they weren't approached.
That baggage is why MS is buying Activision since it depressed the price.
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*Microsoft buys embracer group for 2 billion*
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<Ubisoft has entered the Chatty>
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https://www.youtube.com/watch?v=z-BkrwO_Dck sheeeeeeesh!!!!!!!!!!!!!!! This is massive news and positive news, I really hope the IPs are in a safer overlord now that will take care of them, let them grow and protect and love them \m/ :) \m/!!!!!!!!!!!!!!!!!!!!!!!!!!
Bring on the new Deus Ex open world!!!!!!!!!!!!!!!!!!!!!!!!!!!! + keep those rad Tomb Raider games flowing!!!!!!!!!!!!!!!!!!
