The Embracer Group (EMBRAC-B.ST) acquisition of assets from Square Enix has been approved. The transfer was announced on May 2, 2022, and includes Eidos, Crystal Dynamics, and Square Enix Montreal. It includes IP such as Tomb Raider, Deus Ex, Thief, and Legacy of Kain. The transfer price was listed as $300 million in Square Enix’s original filing.
Analysis
Embracer Group has been on a major acquisition spree in recent years. As DFC Intelligence has reported, this is part of a larger transmedia strategy. The properties acquired from Square Enix would seem to fit right into this strategy (for example Tomb Raider has been made into several movies).
The most intriguing bit about the acquisition is that Embracer paid a relatively low price. The challenge will be seeing what Embracer can do with these assets. The main concern with Embracer is that it will not have the ability to do much with the acquired assets.
Last week Embracer released a reboot of THQ’s Saints Row franchise. Saints Row was an IP acquired from the bankruptcy of publisher THQ (for a period Embracer was known as THQ Nordic). Unfortunately, reviews have been tepid and the game appears to have many technical issues. The Washington Post called it “barely playable.”
The Embracer Group is on a high-risk strategy and by this time next year, it will be interesting to see if they have made any headway.
