Published , by TJ Denzer
Published , by TJ Denzer
Embracer Group shares are down this week after the company revealed in recent financial reporting that it had an unannounced $2 billion USD deal unexpectedly collapse. The company’s interim Q4 2023 report shared some details of the failed deal and, almost immediately following the report, Embracer’s share price dropped by over 40 percent. The deal’s failure was a surprise to Embracer leadership and its Board of Directors.
Word of this unannounced deal’s failure was published in Embracer Group’s interim Q4 2023 financial report on the company’s investor relations website on May 24, 2023. The company that pulled out of the deal is unnamed, but it was a substantial and unexpected loss for Embracer.
Embracer goes on to say that the so-called “groundbreaking strategic partnership” was on the verge of being announced in the company’s Q4, but suddenly the other side pulled out and canceled the deal.
The Embracer Group has been very aggressive in its acquisition of studios and IP over the course of the last several years. In 2022, the company went on a $576 million USD spree of acquisitions. That spree ended up with Embracer holding the keys for popular publishers and developers like Tripwire Games and Limited Run Games. It also got the rights to the Lord of the Rings and Hobbit IPs and recently announced that it would be working with Amazon Games on a new Lord of the Rings MMO.
Nonetheless, the failure of Embracer Group’s unnamed $2 billion deal is likely to hamper its business a bit. With the company currently reeling from the loss, it will be interesting to see what comes next. Stay tuned as we watch for updates.