## Potential Split of Saber Interactive from Embracer Group
Saber Interactive, a prominent video game studio, is allegedly going to separate from its parent company, Embracer Group AB. As per Bloomberg, a contingent of private investors plans to acquire the studio in a deal valued at approximately $500 million. This shift could transform Saber into a privately owned company, with around 3,500 employees.
The Rumored Acquisition
Even though Saber hasn’t made a statement regarding the purported acquisition, if pursued, it would rank as one of Embracer’s paramount financial retrenchments. This follows the failure of a proposed $2 billion deal with a set backed by Saudi Arabia’s sovereign wealth fund, which faced backlash for being the video game realm’s version of “sportswashing.”
Embracer has begun adopting finances saving methods, encompassing letting go of nearly 900 employees in September and additional layoffs at numerous developer studios. Regardless of these actions, the supposed sale of Saber is predicted not to impact the studio’s contribution to the forthcoming Star Wars: Knights of the Old Republic (KOTOR) remake.
The KOTOR Remake and the Role of Saber
Saber’s Eastern European divisions took up the KOTOR remake project from Aspyr Media in mid-2022. Before handing over the project to Lucasfilm and Sony in June 2022, Aspyr had apparently been occupied with it for several years. Nonetheless, the seemingly disproportionate time and money used for the KOTOR demo might clarify the possible disagreement. By the end of summer, Saber had claimed the development of the much-awaited — yet perpetually delayed — remake.
Embracer’s Acquisition Craze and Probable Subsidiary Sales
During a procuring spree in 2020, Embracer bought Saber for $525 million, along with a minimum of 27 other companies, merging some into Saber. The arrangement to sell Saber to private investors purportedly involves an option to “include multiple Embracer subsidiaries.”
However, Gearbox Entertainment, the developer of Borderlands, is too large to be wrapped up in this deal. The fate of Gearbox, along with Embracer’s other remaining studios, is still unclear.
Conclusion
The potential split of Saber Interactive from Embracer Group signifies a considerable shift in the video game industry’s structure. While confirmation of the rumored acquisition is still pending, the move may have extensive repercussions for both firms and their workforce. As the video game industry continues to develop, such tactical decisions will inevitably guide its future path.
Questions and Answers
Q1: Why is Saber Interactive arguably planning to split from Embracer Group?
A1: Saber Interactive hasn’t officially commented on the issue, but reports imply a collection of private investors intend to procure the studio, converting it into a privately owned entity.
Q2: How will the split impact the development of the Star Wars: Knights of the Old Republic (KOTOR) remake?
A2: Reports suggest that despite the predicted sale of Saber, the studio’s role in developing the KOTOR remake won’t be affected.
Q3: What has been Embracer Group’s strategy in recent years?
A3: Embracer Group has been aggressively acquiring numerous gaming studios. However, they’ve also been focusing on cost-cutting strategies, leading to significant layoffs.
Q4: What will happen to Embracer’s other subsidiaries?
A4: The fate of Embracer’s remaining studios, including Gearbox Entertainment, continues to be unsure.
Q5: What’s the estimated value of the deal to buy Saber?
A5: The proposed procurement of Saber from Embracer is reportedly worth about $500 million.
