Arguably among the biggest names in the media publishing industry, Embracer Group announced on Monday, May 2nd, the purchase of several key Square Enix properties and video game licenses. While still subject to regulatory approval, the $300 million deal would see Embracer acquiring some of Square's biggest Western experiences, from the likes of Tomb Raider to the Legacy of Kain series.
The acquisition includes major studios, as well, some of which still even have game sequels in the pipeline, such as Crystal Dynamics and its own forthcoming Tomb Raider outing. In addition to Crystal Dynamics, Embracer will also receive Square Enix Montreal and Eidos-Montreal, which includes, according to the press release, "1,100 employees across three studios and eight global locations."
Gaming IP that Embracer has now acquired, per regulatory approvals, consists in a total of Deus Ex, Thief, Legacy of Kain, Tomb Raider, and "continued sales and operations of the studios' more than 50 back-catalog games," which gives Embracer some hefty legs to work with. The deal between Square Enix and Embracer is set to close by September 2022 officially but could be finalized as early as July.
Embracer, home to among the biggest catalog of video game IPs, has been quite busy over the past several years, gobbling up talent, including the likes of 4A Games Limited, Metro developer, and Gearbox, the studio behind the highly beloved Borderlands. Embracer likewise owns THQ Nordic, Saber Interactive, and even comic book publisher Dark Horse.
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Despite its seeming liquidation, Square Enix retains somewhat of a foothold within the Western games scene, as evidenced via Outriders, Life is Strange, and even Just Cause, all games the company will continue to publish moving forward. The company hasn't exactly been in the green as of late, expressed most prominently in backlash received following the debut of a Square Enix NFT.
On top of the bad press is a mountain of additional relatively poorly met video game releases, such as the recently released Babylon's Fall, as well as Marvel's Avengers and Balan Wonderland. Square is at the point where it needs to seriously consider righting the ship in a time wherein consolidation is at its most extreme.
Some of the biggest entities in gaming are preparing their pocketbooks for major acquisitions, seen more recently with the likes of Sony and Bungie, Microsoft and Activision Blizzard, and even Take-Two and Zynga. Only a week ago, rumors were floating around that Ubisoft was being touted out on the market as acquisition talks were heating up.
Following the agreement's close, the $300 million acquisition will put Embracer at the top of the US charts and second in Canada in terms of led game developers with a total of 124 internal studios, 10,000 engaged game developers, and 14,000 employees per the announcement. The press release also voiced "more than 230 games with more than 30 AAA games" as being currently in active development.
Adds Embracer, "There are compelling opportunities to organically grow the studios to maximize their commercial opportunities."
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