Embracer’s $2bn partnership with Savvy Games, funded by Saudi Arabia, has collapsed.

Embracer's $2bn partnership with Savvy Games, funded by Saudi Arabia, has collapsed.

Embracer Group’s $2bn Partnership Gone Astray: A Tale of Gaming and Controversy

Oh, the twists and turns of the gaming world never cease to amaze! Let’s dive into the bizarre tale of Embracer Group’s ill-fated $2bn partnership that had heads spinning and shares plummeting.

Picture this: Embracer Group, the gigantic umbrella corporation housing the likes of THQ Nordic, Gearbox, Koch Media, Saber Interactive, and beloved franchises such as Borderlands and Tomb Raider, was all set for a major strategic partnership. It was poised to rake in over $2bn in contracted development revenue over six years. But, alas! At the eleventh hour, fate threw a monkey wrench into the equation, leaving Embracer reeling.

Now, the identity of this mysterious partner was initially a well-kept secret. Suspenseful, right? But here’s the scoop, my friends. Axios, armed with the wisdom of “four sources familiar with the deal,” reveals that it was none other than the Saudi government-funded Savvy Games Group, the gaming-focused arm of the highly controversial Prince Mohammed bin Salman’s Saudi investment fund. Oh boy, brace yourselves!

According to Axios, the proposed partnership would have involved a whopping $2bn investment into Embracer’s game development and publishing ventures. But here’s the plot twist: nobody seems to know why Savvy Games Group backed out. It’s a head-scratcher indeed!

Now, let’s take a moment to discuss Savvy. They had already snagged a staggering £840m stake in Embracer before the deal imploded. This gave them around 8.1 percent of shares and 5.4 percent of voting power in the company. Embracer’s CEO, Lars Wingefors, swiftly rushed to defend this controversial Saudi investment, assuring everyone that it wasn’t a decision taken lightly. Oh Lars, the drama!

• Cities: Skylines 2 simulates layoffs and homelessness, making it in...
• Overwatch 2 Fans Disappointed by Missed Omnic Skin Opportunity
• Stick of Truth 2: The South Park Case

But hey, why is there such commotion surrounding Saudi Arabia’s involvement? Well, it all stems from the infamous CIA finger-pointing situation. Prince Mohammed bin Salman, with his controversial rule, has been accused by the CIA of orchestrating the assassination of Washington Post journalist Jamal Khashoggi. Plus, the country’s human rights record is not exactly shiny, with homosexuality being criminalized and punishments ranging from floggings to the death penalty. Yikes!

It seems Saudi Arabia has a grand plan to invest a jaw-dropping 142 billion riyals (£32bn) into the video game industry, as part of an effort to reduce reliance on oil. They’ve been on a shopping spree, acquiring chunks of developers left and right. EA, Activision Blizzard, Take-Two Interactive, Capcom, and even Nintendo have all landed on their shopping list. Talk about ambitions!

Since the shocking collapse of the $2bn deal, Embracer has been on a mission to pick up the pieces. They’ve launched a “comprehensive restructuring program,” which unfortunately involves job cuts and studio closures. But fear not, dear gamers! They’ve vowed to channel their rights to Lord of the Rings and the Hobbit in a “very sGameTopicficant fashion.” Hold onto your elven cloaks, folks!

And there you have it, a tumultuous tale of gaming alliances gone awry, controversy, and more twists and turns than a rollercoaster. The gaming world never fails to leave us breathless with its dramatic sagas. Stay tuned for more exciting adventures in the realm of gaming!