Embracer has completed the financial portion of its divestment from Saber Interactive and confirmed that 4A Games and Zen Studios were not included in the deal.
The Swedish conglomerate sold significant assets of Saber Interactive–including studios like 3D Realms, Slippage, and New World Interactive–to Beacon Interactive earlier this year. Beacon is owned by Saber co-founder Matthew Karch.
In total, Beacon has chosen to purchase a myriad of assets, including a number of studios, 38 ongoing game projects, proprietary engine technology, and numerous game tools. The company also had the option to acquire Metro developer 4A Games and Pinball FX creator Zen Studios as part of the deal, but has decided not to pursue those deals.
Embracer CEO Lars Wingrfors said he was “pleased” with how the divestment unfolded and “very pleased to see the great teams and resources of 4A Games and Zen Studios remaining at Embracer.”
“These will be key elements in our continued journey. 4A Games currently has two AAA titles in development that we can't wait to announce,” added in a press release“I would also like to take this opportunity to thank Matthew Karch for his contributions over the years and, at the same time, congratulate the team at Saber on the successful release of the iconic Warhammer 40,000: Space Marine 2which will be a great start to their new facility.”
The financial aspects of the Saber divestiture were finalized after Embracer received an upfront payment of $168.4 million from Beacon. The conglomerate will receive another $28.1 million in 2024 and 2025.
“The divestiture has helped improve Embracer's cash flow by reducing capital expenditures, net debt and future liabilities. With this payment, all commitments related to the transaction, including financial obligations, are now fully paid,” a press release added.
The hugger is still trying to correct the course after years of unbridled spending came to an abrupt end, resulting in widespread layoffs, studio closures, and project cancellations across the company. Recent Layoffs at Lost Boys Interactive demonstrate that brutal downsizing is still an ongoing process.