Embracer Group's failed $2 billion deal was reportedly with Saudi-backed Savvy Games
After acquiring several games development studios and popular IPs, Swedish holding company Embracer Group saw its stock plummet a few months ago after a deal worth $2 billion in revenue over six years fell apart. This led to some restructuring within the company with layoffs, game cancellations, and forgoing of some studios. While details of the failed deal were not made public, a new Axios report sheds some light into the matter.
According to the outlet which talked with four sources familiar with the deal and reviewed related documentation, the multi-billion deal would have involved the Saudi government-funded Savvy Games Group. Their investment would assist games development and publishing from Embracer, as a push from the Saudi company to make its imprint in the gaming industry. Savvy has in fact committed to investing $38 billion in this industry and has already bought $1 billion worth of Embracer shares. The Swedish company was criticised for this deal considering Saudi Arabia's poor human rights records.
While the Axios report reveals Savvy's involvement in the deal, the reason for them walking out is not clear.
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