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“A consortium of private investors” purportedly set to acquire the studio for around $500 million.
Saber Interactive, a subsidiary of Embracer Group AB, has reportedly secured an exit strategy from its parent company. According to a report by Bloomberg, a group of private investors will acquire Saber in a deal worth approximately $500 million, transforming the studio into a private company with 3,500 employees. When contacted for confirmation, Saber declined to comment on the alleged buyout.
If the agreement goes through, it would mark one of Embracer’s major cost-cutting moves since the collapse of a reported $2 billion deal with a group backed by Saudi Arabia’s sovereign wealth fund. The failed deal drew criticism for its potential association with “sportswashing,” a practice where popular sporting acquisitions are used to improve the global image of beleaguered governments. This controversy followed the US intelligence community’s conclusion that the Saudi regime was responsible for the murder of journalist Jamal Khashoggi in 2018.
Embracer has implemented various cost-cutting measures in recent months, including layoffs and studio closures. However, the sale of Saber will not impact the studio’s involvement in the development of the highly anticipated Star Wars: Knights of the Old Republic (KOTOR) remake. Saber took over the project from Aspyr Media in 2022.
Embracer acquired Saber for $525 million in 2020 as part of its aggressive expansion strategy, which involved acquiring numerous gaming studios. The deal to sell Saber to private investors reportedly includes an option to include multiple Embracer subsidiaries.
Meanwhile, another Embracer subsidiary, Gearbox Entertainment, is reportedly not included in the transaction. The studio’s CEO, Randy Pitchford, informed staff that a decision about Gearbox’s future had been made and promised to share more details next month. The uncertainty surrounding Gearbox and Embracer’s remaining studios has led some developers to seek employment elsewhere due to layoff fears and pay concerns.
In conclusion, Saber Interactive is said to be pursuing an exit strategy from Embracer Group through a deal with private investors. This move comes as part of Embracer’s cost-cutting efforts and follows the collapse of a major deal in 2022. The sale of Saber will not affect its involvement in the development of the Star Wars: KOTOR remake.