Swedish gaming company Embracer Group AB will sell one of its largest subsidiaries, Saber Interactive, to a group of private investors in a deal worth up to $500 million (roughly Rs. 4,142 crore), according to a person familiar with the transaction.
Saber will become a privately owned company with around 3,500 employees, said the person, who asked not to be identified discussing nonpublic information. The company plans to continue developing a remake of Star Wars: The Knights of the Old Republic, the highly anticipated game that was removed from its previous developer Aspyr Media in 2022.
The deal will be one of Embracer’s largest moves yet in an ongoing cost-cutting initiative that has seen the company lay off employees and shutter studios around the world over the past year.
Saber and Embracer declined to comment.
Saber, the developer of games such as Snowrunner and World War Z, operates studios in several countries, including the US, Portugal and Russia. In addition to making its own original titles, it does work for other developers.
Embracer purchased Saber for $525 million (roughly Rs. 4,349 crore) in 2020 as part of a spending spree in which Chief Executive Officer Lars Wingefors acquired at least 27 companies. Several of the acquisitions, such as Demiurge Studios, based in Boston, and New World Interactive, based in Denver, were folded into Saber.
Over the past year, as interest rates soared and a $2 billion (roughly Rs. 16,569 crore) partnership with a gaming group backed by Saudi Arabia’s sovereign wealth fund fell through, Embracer has been shedding costs. The debt-saddled company has shut down several subsidiaries, canceled projects and is looking to sell more divisions.
The $500 million figure includes an option for Saber to bring along multiple Embracer subsidiaries, the person said.
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