14 DAY TRIAL // In a surprising move, Square Enix has decided to sell all its Western studios to Embracer Group AB, the Swedish video game and media holding company that has acquired other IPs from defunct publishers like THQ and JoWooD. What’s shocking is that the deal will close for just $300 million, a very low figure considering what Embracer is getting for the money.
Under the agreements, Embracer will acquire the development studios Crystal Dynamics, Eidos-Montreal, Square Enix Montreal, and a catalog of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalog games from Square Enix.
Additionally, the acquisition includes about 1,100 employees across three studios and eight global locations. Finally, the deal also includes the continued sales and operations of the studios’ more than 50 back-catalog games.
“We are thrilled to welcome these studios into the Embracer Group. We recognize the fantastic IP, 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,” said Lars Wingefors, Co-founder and Group CEO, Embracer Group.
The transaction is subject to various regulatory and other external approvals, but it’s expected to be completed during the second quarter of Embracer’s financial year 22/23 (July – September 2022), the company announced.
The irony is that there’s now a higher chance to get a Legacy of Kain remaster (or a new game?), as well as another entry in the Deus Ex series than before. Also, Square Enix noted in its statement that the money it gets from the deal will help the company pursue investments in blockchain technology and NFTs. Good luck with your endeavor Square Enix, it was nice knowing you!