In case you somehow missed it, Square Enix and The Embracer Group announced today that the two have entered into an agreement for The Embracer Group to acquire Crystal Dynamics, Eidos-Montreal, Square Enix Montreal and a host of intellectual property such as Tomb Raider and Deus Ex. The deal is expected to close for $300 million somewhere between July and September 2022. Square Enix, for its part, has explained the purpose of the sale to Embracer Group as due to a number of factors, but it significantly helps the company “launch new business.” By moving forward with investments in areas including blockchain, artificial intelligence, and cloud.”
“The transaction will help the company adapt to the ongoing changes in the global business environment by creating a more efficient allocation of resources, which will enhance the company’s value by accelerating growth in the company’s core business in digital entertainment.” A note to Square Enix investors about the sale Partially read. “In addition, the deal enables the launch of new businesses by moving forward with investments in areas including blockchain, artificial intelligence, and cloud.”
Square Enix Holdings Co. , lt. It enters into an agreement with Embracer Group to acquire Crystal Dynamics, Eidos-Montréal, Square Enix Montréal and IP.
Press release: https://t.co/ooOYacp4PW pic.twitter.com/2PmQE967gk
Square Enix May 2, 2022
“The transaction will also provide an opportunity to better align our external publishing function with our organization in Tokyo,” Square Enix’s logic continues, “revisiting the existing governance structure and associated reporting lines, and developing integrated group management with the goal of maximizing revenue from future titles launched by group studios. in Japan and abroad.
The Embracer Group, for its part, has a relatively simple explanation for why it agreed to buy the studios and IP from Square Enix: They have a history of delivering blockbuster movies, and while the IP may not live up to Square Enix’s expectations, Embracer Group has high hopes. “The acquisition builds on Embracer’s mission to create a leading, independent global ecosystem for games and entertainment,” I mentioned the company. Embracer has been particularly impressed by the studio’s rich portfolio of original IP, featuring brands with proven global capabilities such as Tomb rider And The former god, as well as demonstrating the ability to create AAA games with a large and growing fan base. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities.”
As noted above, Square Enix and Embracer Group have entered into an agreement for the latter to acquire Crystal Dynamics, Eidos-Montreal and Square Enix Montreal along with IPs such as Tomb Raider, Deus Ex, Thief, Legacy of Kain as well as a number of back catalog addresses. worth $300 million. It’s still subject to regulatory approval and the like, but it’s expected to close later this year. You can check out all of our previous coverage of Square Enix in general here.
What do you think of Square Enix’s logic here? Curious about what Embracer Group will do with all of its new acquisitions? Tell us in the comments, or feel free to reach out to me and hit me up right on Twitter at Tweet embed In order to talk about all things gaming!
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