Report: Embracer Group to sell Saber Interactive for $500 million with option to bring along other subsidiaries

Embracer Group continues its cost-cutting restructuring program. The new move might affect one of its largest operative groups, Saber Interactive.

• As reported by Bloomberg, Embracer Group will sell Saber Interactive to a group of private investors for up to $500 million.
• According to a source familiar with the matter, the Snowrunner maker will become a privately owned company with around 3,500 employees.
• Bloomberg also noted that under the deal, Saber will have an option to “bring along multiple Embracer subsidiaries.”
• Following the sale, Saber will continue developing a remake of Star Wars: Knights of the Old Republic, which was originally in the making at Aspyr Media.
• Founded in 2001, Saber Interactive is a global game developer and publisher headquartered in the US. It also has offices across Europe, as well as its oldest branch in Saint Petersburg, Russia.
• Saber is best known for games like World War Z and Snowrunner. It is now working on Warhammer 40,000: Space Marine 2, in addition to publishing and outsourcing services.
• Embracer Grouop acquired Saber Interactive for $525 million in 2020. Since then, the company has taken over other game developers, including 3D Realms, Aspyr, 4A Games, and New World Interactive.
• It is unclear whether the aforementioned subsidiaries will continue to be part of Saber. But given a headcount of 3,500, it can be assumed that most of these studios will also leave Embracer Group. If true, this would be a huge blow to the Swedish holding company in terms of value and video game portfolio.

The sale of Saber Interactive is part of Embracer’s ongoing restructuring program, which involves mass layoffs, studio closures, game cancellations, and asset divestments. Since June 2023, the Swedish holding company has already cut over 1,300 jobs, not to mention the closures of studios like  Campfire Cabal, Volition, and Free Radical Design.

Embracer said its main goal is to reduce net debt to at least SEK 8 billion ($760 million). However, it recently noted that this target is “unlikely to be reached” before the restructuring is completed on March 31, 2024. According to CEO Lars Wingefors, the company has plans for “certain divestments” that could “significantly reduce net debt,” implying further layoffs and divestments.