Embracer Group AB, a prominent player in the gaming industry from Sweden, has entered into an agreement to sell Saber Interactive, one of its largest subsidiaries, to a group of private investors. The transaction is estimated to be valued at up to $500 million (approximately Rs. 4,142 crore), according to a source familiar with the negotiations.
Post-sale, Saber Interactive will transition to a privately held entity with a workforce of about 3,500 employees. The company is committed to continuing its development of the eagerly awaited remake of Star Wars: The Knights of the Old Republic, after it was reassigned from its former developer, Aspyr Media, in 2022.
This deal marks a significant step in Embracer’s broader strategy to reduce costs, which has involved layoffs and the closure of various studios globally over the past year.
Representatives from both Saber and Embracer did not provide comments regarding the sale.
Saber Interactive is renowned for its work on popular titles including Snowrunner and World War Z, and operates studios across several countries, including the United States, Portugal, and Russia. In addition to developing its own original content, Saber also collaborates with other game developers.
In 2020, Embracer acquired Saber for $525 million (about Rs. 4,349 crore) during a major expansion phase led by CEO Lars Wingefors, who brought in at least 27 companies, including Demiurge Studios in Boston and New World Interactive in Denver into the Saber fold.
Following a year marked by rising interest rates and the collapse of a $2 billion (around Rs. 16,569 crore) partnership with a gaming group backed by Saudi Arabia’s sovereign wealth fund, Embracer has been actively cutting costs. The company, burdened by debt, has ceased operations at multiple subsidiaries, scrapped various projects, and is exploring further divestitures.
The projected sale price of $500 million also includes an option for Saber to acquire several other subsidiaries from Embracer.
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