Embracer Stock Crashes (-45%) Following Cancellation of $2 Billion Deal

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Embracer Group Stock Crashes Following Cancellation of Transformative $2 Billion Deal

Embracer Group CEO Lars Wingefors also announced the delay of several games with strong sales potential from fiscal year 2023-2024 to 2024-2025. However, the day’s biggest news was that the previously teased transformative deal worth $2 billion in development revenue fell through at the last minute.

In his remarks, Wingefors said the deal would have set a ‘new benchmark’ for the whole gaming industry. He added that the Group received a verbal commitment as far back as last October, but negotiations went on slowly. Despite hundreds of people working on the deal from both sides and the documentation being ready, the deal fell through at the last minute when the Embracer Group requested the execution of the agreement before its Q4 report.

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i wonder who it was maybe Microsoft/Xbox or tencent or that public investment fund from saudi arabia. If it was Microsoft it was probably for more co development and support studio support or maybe a licensing deal for Embracer Groups Catalog

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This sounded like a big deal. Unfortunate that is isn’t happening.

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Curious if it was with Netflix or Amazon.

I don’t think it would have been started with Warner Bros before they were acquired by Discovery, as WB wasn’t looking to start any big money spend initiatives. Also certain it wouldn’t have been WBD since they were cutting budgets everywhere.

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They have been working closely with Amazon these days.

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I saw some people speculating that there might be a fire sale for studios incoming. Is that how this works? Doubt it, right?

Let’s say it does work like this, I hope the ABK shit won’t stop MS from maybe going for one or two.

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It can be. Embracer is an investment firm/holding company. They essentially exist to buy and sell assets.

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I see, I see.

Man I really hope this ABK bullshit which seems to take forever won’t block MS from making some moves, while the competition easily can. And I bet they will.

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I mean, to be fair, ABK is a vastly more important buy than anything embracer has, but I generally agree.

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Like to see Crystal Dynamics become part of the Xbox family

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If there’s a fire sale, then Microsoft should def go after Crystal, Square Montreal, and possibly Gearbox if you feel you can get something out of borderlands franchise

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Montreal is Guardians developer? That would be an amazing get.

Let’s just hope they can, I mean won’t it risk ABK a little?

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Yeah, they’ve done that game and Deus Ex series. I feel those studios really fit Microsoft well.

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This would be a cool move but I have to wonder if the prospect of buying Tomb Raider might give some people at MS pause :sweat_smile:

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My initial assumption is it’s the Amazon Tomb Raider deal.

Possibly good news for Xbox if they can get their hands on Crystal Dynamics and Eidos.

They really need a few of these ‘blockbuster’ style studios, plus they are already working on Perfect Dark and Fable.

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CMA: Tomb Raider is essential IP.

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If MS can get ABK to close soon, then maybe Embracer will be on the table and this would give a huge boost to Game Pass too.

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Embracer statement about restructuring and Crystal Dynamics statement (all is fine with their PerfectDark and TombRaider projects):

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They really did bank on this 2 billion contract letter of intent. I want to know who it was, Amazon, Tencent, somebody else?

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