I think the only problem there is they would be interested in the same studios/IP’s
Eh, I’d think it would be something they could negotiate. For instance, I believe Amazon would want the LOTR IP more than MS as well as companies like Dark Horse and PLAION>
1 Like
I do think that if the goal was to sell them then they wouldn’t have gone through the effort of rolling them out as a separate public company. They could have just sold them like everything else?
It sounds horrible but MEEF would make a lot of sense for Amazon. I wouldn’t be surprised if Amazon purchased MEEF to expand Amazon MGM Studios and Amazon Gaming. This new structure is more than doubtful lol
1 Like
I feel a acquisition incoming, come on Xbox make it happen
2 Likes
Everytime Asmodee/Embracer comes up I’m going to whine that someone needs to make me some Android Universe (Products (fantasyflightgames.com)) video games.
I don’t know I think MEEF fits Amazon to a T. Amazon is already publishing the next Tomb Raider and are very much into the LOTR IP and the other games will work to bring them up to speed in the industry. Seems like a quick way to solve a bunch of problems.
I just have a hard time reconciling why they didn’t just sell them when they were selling everything else if that was their intent. Why perform a re-org, take them public and then sell them? Maybe they weren’t able to get the price they wanted?
1 Like
it’s better to sell them as a whole than piece meal. This way they get all in one pack and no need to deal with regulators over and over again. The IPs also work well with their streaming TV. I think they would be stupid to not jump at this chance.
They could have shopped a package deal before rolling them out as a different public company though, and if Amazon was interested they would have bought them. The only way this makes sense to me is they either don’t want to sell OR nobody was willing to buy on their terms. And if nobody was willing to buy on their terms then it’ll likely take a change in growth/value to get someone to buy in.
1 Like
You would think so, however I have also seen companies do this before an acquisition too.
A few YouTubers seem to be running with the idea.
https://youtu.be/p05Vw0QPPF0?si=GgLwvUrCK7rjbJlU (around 4 min 5 seconds).
2 Likes
Nah besides a package deal would only make sense if there were buyers then putting things together like this is pretty them looking at what would work best for potential buyers. I don’t think Amazon would have gone for a package deal since it still a number of individual studios and would be looked at in that way by regulators probably in similar manner. I think this was the better. I wouldn’t be surprised if Microsoft decided to go for one with the thought of dropping one or two studios if the regulators push for it.
Agreed.
Wasn’t Sara Bond Teasing Lord Of The Ring Things at one point? Maybe I’m misremembering
No, she compared the Xbox folks to the fellowship, it wasn’t teasing anything
I mean, it’s a package deal now. It just happens to be an independent public company instead of assets of a public company. It’s not like they would have to go for regulatory approval individually for each thing they are buying. Surely it’d be for the entire transaction.
Got any examples? And Alex probably knows less than we do lol
1 Like
I agree there 
!
Hmm I was thinking from a work capacity, however publicly I can only think of a few immediately.
Motorola split out Motorola Mobility before Google acquired Motorola Mobility the following year.
If you like your drink I remember Fortune Brands also split into three companies, with one of the new entities Beam Inc then being acquired by Suntory Holdings.
Tyco also spun off it’s security business ADT which was then acquired by Apollo.
I’m sure there are much better/recent/relevant examples but I am aware it does happen, especially with private companies.
Typically when multiple entities are created it’s proposed to increase value (standalone or for acquisition) for each entity, in this example it could be seen as the best way for shareholders to increase their value rather than keeping it as one company.
1 Like
They are good examples but at least a few of them have many years between spin off and acquisition, which to me implies the spin off wasn’t done solely with acquisition in mind and especially not with a partial suitor in mind like people are suggesting with Amazon.
Motorola specifically though does look like an example where it was done with that intent.
1 Like
Yep like I say probably not the best examples but from memory I have definitely seen ones like Motorola where it’s very speedy. I’m sure I could probably find a few more demergers on Google when I have time.
For a while it was looking like WBD was going to be another one of those after they broke free from AT&T but it clearly didn’t happen.
I have listened/watched people before that are far more knowledgeable about M&A’s then I am, where they have discussed creating these new entities, bulking up their value (which can take time) and then selling them off that way. It can be more valuable than simply trying to do a fire sale which you’ll see these companies do when they are desperate. Clearly Embracer sold enough that they are stable (for now).
1 Like
Yeah I’m on bored with bumping the value, that’s why I figured that their current terms weren’t acceptable to anyone so they gotta roll on their own until something changes.
I think a lot of people are looking at this as near term flip, targeting specific buyers like Amazon or Microsoft. I think if that was the intent AND someone was willing to pay thr asking price then they wouldn’t have had to do this. Instead they’ll go off and prove themselves through the success of Tomb Raider (etc.) and increase interest or not prove themselves and see thr asking price take a dive lol.
2 Likes
Yeah I doubt anything imminent, even if it did start next year the M&A process often take ages. There’s been a few at my work which took years to go through (and they frustratingly still act as separate units).
1 Like