Major acquisition deal struck with Square Enix
The bottomless pit of cash that is the Embracer Group has gone on another spending spree, announcing its intention to acquire three studios from legendary Japanese developer/publisher Square Enix. The company has entered into an agreement to purchase developers Crystal Dynamics, Eidos Montreal, and Square Enix Montreal for a reported sum of around $300 million USD.
“We are thrilled to welcome these studios into the Embracer Group,” Embracer Group CEO Lars Wingefors said in a press release. “We recognize the fantastic intellectual property, world-class creative talent, and track record of excellence that have been demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and become a great part of Embracer.”
“Embracer is the best-kept secret in gaming,” is the curious statement from Square Enix America CEO Phil Rogers. “A massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment.”
Alongside the acquisition of Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, Embracer Group will pick up much of the studios’ respective IP catalogs, which include popular and financially successful franchises such as Deus Ex, Thief, Legacy of Kain, and, of course, Tomb Raider. The deal, set to close in fall 2022, will also see Embracer add 50 previously released titles to its big book of licenses, which potentially includes the great Marvel’s Guardians of the Galaxy and the not-great Marvel’s Avengers, pending license holder discussions.
According to industry analyst Daniel Ahmad, Square Enix has been looking to offload much of its western development division for some time, with the publisher reportedly disappointed with what it sees as “underperforming” releases within the sector.
The three Square Enix studios join Embracer Group’s mighty portfolio of developers and publishers which includes THQ Nordic, Gearbox Entertainment, Koch Media, and Saber Interactive as well a huge range of subsidiary and partner studios such as Coffee Stain, DECA Games, Asmodee, and Easybrain.