In a new press release, it has been confirmed that Embracer Group has divested two small studios, Arc Games and Cryptic. It was stated that the net cash proceeds are around $30 million, and that the studios will be acquired by Project Golden Arc, Inc. Embracer will retain the publishing rights for the Remnant franchise, which currently sits under the umbrella of Arc Games.
It was noted that the transaction has been designed to strengthen Embracer Group’s ‘focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow.’
Two More Gone from Embracer
The Embracer Group has been pushing out studios for the last eighteen months or so, ever since an enormous deal worth $2 billion collapsed, forcing the company to adjust operations on an epic scale.
Since then, Embracer has laid off thousands of employees, shut down almost 100 projects, and divested some of the biggest labels that sat under the brand, including Saber Interactive ($500 million) and Gearbox ($460 million).
This latest move is a strategic one that will see Arc Games and Cryptic Studios relocate from under the arm of Embracer.
In a statement, Embracer’s CEO, Phil Rogers, said:
This transaction supports our key priorities by strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow. The deal also allows online multiplayer game Fellowship, developed by a talented external team in Stockholm, to find a great home within Coffee Stain Group. I would like to thank the teams at Arc and Cryptic for their hard work over the past four years and wish them all the best as we are confident they will thrive and develop in the years ahead.
Project Golden Arc is the buyer for these two subsidiaries and is directly captained by the Arc Games leadership team.
It was noted in the press release that the ‘closing of the transaction is expected to take place as soon as customary conditions are fulfilled.’
Do you think Embracer has more slimming down to do? Let us know about your shrewd industry knowledge on the Insider Gaming Discord server.
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Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.
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