Embracer Group: What's Next After Saber Interactive Sale?

This Week in Business is a weekly column that provides an analysis of recent events and trends in the gaming industry. Embracer Group has confirmed the sale of Saber Interactive, marking the first major divestment for the company. The sale price was $247 million, and the deal is expected to reduce Embracer's debt by $205 million. However, the company still has a significant amount of debt, totaling over $1.4 billion. Embracer's CEO, Lars Wingefors, has stated that the company is exploring further divestments to strengthen its balance sheet and reduce costs. The company has 11 operational groups, each with its own set of studios and intellectual properties. Some of the notable groups include THQ Nordic, Plaion, and Gearbox Entertainment. THQ Nordic is one of the largest segments of Embracer Group and is responsible for developing and publishing games such as Darksiders and Biomutant. Plaion has provided Embracer with some of its biggest AAA hits, including Metro Exodus and Saints Row. Gearbox Entertainment is another significant group, known for developing the Borderlands series. Embracer also has a presence in the tabletop gaming industry through its Asmodee Group, which has generated significant revenue for the company. The company's multimedia ambitions are evident in its ownership of Dark Horse Comics and Middle-Earth Enterprises. Dark Horse Comics is a leading publisher of comics and graphic novels, while Middle-Earth Enterprises owns the rights to J.R.R. Tolkien's works, including The Lord of the Rings. Embracer's investment in new IP development and teams is evident in its Amplifier Game Invest division, which has supported the development of games such as Lightyear Frontier and The Ascent. The company's mobile divisions, Deca Games and Easybrain, have also shown promise, with Easybrain boasting over 1 billion downloads and 16 million daily active users. However, the mobile space is highly competitive, and Embracer may need to invest further to maintain its presence. The sale of Saber Interactive is just the beginning of Embracer's restructuring efforts. The company needs to find buyers for its other studios and groups, which could be a challenging task given the current market conditions. Embracer's future plans and strategies will be closely watched by the industry, and it remains to be seen which studios or groups will be sold next.