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Embracer say their restructure is over, but it’s “too early” to start acquiring studios againMy bone thresher is not yet ready to thresh more bones
My bone thresher is not yet ready to thresh more bones
Earlier today, megacorp Embracer announcedthey were selling Borderlands developer Gearbox to Take-Two. During an investor call about the divestment, CEO Lars Wingefors confirmed that this brought an end to the restructuring processEmbracer announced last year. He was also asked whether this meant Embracer had plans to start acquiring other studios again.
Wingefors said it was “way too early” to restart “the M&A engines.”
The companies that Embracer have chosen to sell had “negative cashflow”, he said, and divesting from those businesses would make the Embracer that remains more “cashflow generative.”
This doesn’t mean that it’s time to resume the group’s previous strategy of hoovering up other companies, however.
During the last twelve months, developer and publishing group Saber Interactivewere split into a separate company, taking 3D Realms and 4A Studios with them; TimeSplitters developerFree Radical were closed;Saints RowdeveloperVolition were closed; and 8% of Embracer’s employees were laid off.
So hey, it’s good news that they’re not currently planning to restart the mergers-and-acquisitions engine, aka the creativity shredder, aka the human misery harvester, aka the C-suite fidget spinner. Maybe someone should hide their keys in case they change their mind.
