On the afternoon of May 24, the value of Embracer Group‘s shares collapsed by more than 40%. Most likely, the reason was the failure of the $2 billion deal, which the company reported in its annual financial report.

At the time of writing the news, the shares of Embracer Group are trading 46.2% cheaper than last night. Embracer Group’s market value fell to 28.11 billion Swedish kronor, or approximately $2.63 billion.

Embracer Group has been negotiating a strategic partnership with an unnamed company for seven months. Late last night, this company informed Embracer Group about the cancellation of the transaction. All details of the failed partnership are not disclosed, but it is known that it included a contract for $ 2 billion.

After canceling the deal (and postponing the releases of some unannounced games), Embracer Group revised its forecast for the next fiscal year. Now it expects to receive adjusted EBIT of $656-843 million instead of $965 million – $1.27 billion.