Troubled video game publisher Embracer has announced the sale of more assets, this time, much of Saber Interactive, for the price of $247 million.
In a financial call this morning, Embracer said the sale means it will cease all operations in Russia, something that will help it “reduce [its] geopolitical risk,” although the buyer, a company called Beacon Interactive, was founded by Saber Interactive co-founder Matthew Karch.
Karch will now run Saber studios separately from Embracer, although in a statement he said he will remain “a large long-term shareholder of Embracer” who will continue to partner with the company on “several ongoing and future projects.” However, on the financial call, Embracer boss Lars Wingefors noted that Karch would not retain any management or board positions at Embracer.
Newscast: Why are there so many layoffs in the gaming industry?In terms of actual studios, today's announcement will see Embracer sell all Saber Interactive-branded studios, plus New World Interactive, Nimble Giant Entertainment, 3D Realms, Slipgate Ironworks, Mad Head Games, Fractured Byte, and Sandbox Strategies. Several of these studios announced layoffs in recent months.
Embracer will retain Aspyr, TripWire, Beamdog, Tuxedo Labs, Demiurge, Shiver, Snapshot Games and 34 Big Things. It will also continue to work with 4A Games and Zen Studios for now, although Saber has the right to acquire them in the future.
Upcoming games include four upcoming “AAA” games, including the next from Metro creator 4A Games, several “AA” games from Asmodee and 34 Big Things, Killing Floor 3, plus upcoming titles and back catalog from Zen Studios , Aspyr and Tripwire.
The sale will reduce Embracer's debt by 2.1 billion Swedish crowns, or around £160 million.
After a huge acquisition spree, Embracer subsequently shed thousands of employees and numerous development studios over the past year as it struggles to balance the books, it says, after a major $2 billion investment fell through.
Embracer has since laid off eight percent of its workforce (a total of 1,387 employees) and closed several of its high-profile studios, including Free Radical, which was working on the now-canceled TimeSplitters game, and Saints Row developer , Volition.
Last month, it was reported that a deal that would allow Embracer to sell Borderlands maker Gearbox was in the “final stages” of completion.
