Embracer, the Swedish video game giant, was left unable to carry out a strategic business merger and its shares fell 40%. How bad is the thing? We tell you, here!
Shares of Swedish developer Embracer have just experienced a dramatic drop after a “very important strategic acquisition” collapses. The agreement would have implied some $2 billion dollars in development, invested over six years, according to reports Reuters. In company communications, they said that this would represent “a new benchmark for the video game industry.” As a result, the drop is more than 40%.
“Last night we were informed that a very important strategic agreement that was negotiated for seven months will not materialize.,” the company stated. “The deal would have allowed for a payment covering an already capitalized cost for a number of high-budget games, but also markedly increased mid- to long-term profit, and cost predictability over the life of game development projects..”
embrace He did not clarify which company the agreement would have been with, but the theory is that it was Microsoft or Amazon. It may have had to do with tomb Raideraccording to rumors, a franchise that was recently bought from Square Enix.
The company was already in red due to the poor performance of the recent Saints Row.
On the other hand, the company’s Dead Island 2 is all good news: the company confirmed that it’s the biggest launch in its history.
“In its opening weekend, Dead Island 2 sold 1 million units, and exceeded expectations. Measured over seven days, it became Deep Silver and Plaion’s best ever release in terms of units and earnings. We are happy to report that the game has already sold over 2 million. We’re glad to see that the decision to give the studio time to polish their game paid off.”They confirmed in a statement.