Highlights
- Saudi Arabia-backed Savvy Gaming Group was reportedly the previously unknown partner in a failed multi-billion-dollar deal with Embracer Group.
- Embracer Group is a major player in the gaming industry, with a portfolio of gaming companies and 221 games in development.
- The reasons behind Savvy Games' abandonment of the deal remain unclear, but it has led to unfortunate consequences such as studio shutdowns and job losses.
Just over a year following the unexpected collapse of a multi-billion-dollar deal by Swedish video game and media giant Embracer Group, it’s been revealed that the company’s previously unknown partner may have been the Saudi Arabia-backed Savvy Gaming Group. In recent years Saudia Arabia has invested billions in gaming, with Savvy Gaming Group recently announcing its interest in acquiring a major game publisher to increase its stake in the industry.
Formerly operating as Nordic Games Licensing AB and THQ Nordic AB, Embracer Group has become a familiar name to many gamers in recent years as the company has gone on an aggressive acquisition spree. Snatching up both small studios and established developers like Gearbox Software, the company has invested billions in growing its portfolio of gaming companies. In addition to adding studios to its ever-growing roster, Embracer Group has also acquired publishers like 3D Realms and Saber Interactive. This series of acquisitions has made the company one of the biggest players in the gaming industry, with a recent announcement revealing that Embracer Group currently has 221 games in development.
In a story first uncovered by Axios, it’s been revealed that the previously unknown partner in a failed Embracer Group mega-deal from last year was reportedly Savvy Games Group. Axios was tipped off to the state-owned company’s possible involvement in the deal by four sources who were unable to discuss it publicly, and a spokesperson from Embracer Group had declined to respond to Axios’ request for further details. Wholly owned by Saudi Arabia’s sovereign wealth fund, Savvy Games’s board is chaired by Saudi Crown Prince Mohammed Bin Salaman. The company made headlines earlier this year when Savvy Games became Nintendo’s largest outside investor, acquiring just over 8% of the iconic Japanese company.
The failed deal would have seen Savvy Games investing heavily in Embracer Group, which currently owns several high-profile properties including the Tomb Raider and Legacy of Kain franchises, to fund the development and publishing of games. According to Axios’ sources, in late 2022 the two companies reached a verbal agreement to secure funding for Embracer Group before Savvy Games unexpectedly walked away from the bargaining table. It’s still unclear at this point why the Saudi-backed company reportedly abandoned the deal at the last minute.
While the reasons behind the Savvy Games' apparent abandonment of the deal will likely never come to light, its failure is still leading to some unfortunate fallout in the gaming industry. Earlier this month Embracer Group shut down a studio that was less than a year old following cost-cutting efforts at the company, leaving multiple developers out of a job in the wake of the failed investment.
Source: Axios