Embracer Group to sell Saber Interactive, developer of new ‘Star Wars’ game remake, in $500 million deal

Swedish gaming company Embracer Group AB will sell one of its largest subsidiaries, Saber Interactive, to a group of private investors in a deal worth up to $500 million (roughly Rs. 4,142 crore), according to a person familiar with the transaction.

Saber will become a privately held company with about 3,500 employees, said the person, who asked not to be identified discussing non-public information. The company plans to continue developing Star Wars: The Knights of the Old Republic, a remake of the highly anticipated game that was spun off from its previous developer Aspyr Media in 2022.

The deal would be one of Embracer’s biggest moves yet as part of its ongoing cost-cutting initiatives, which have seen the company lay off staff and close studios around the world over the past year.

Saber and Embracer declined to comment.

Saber, the developer of games like Snowrunner and World War Z, operates studios in several countries, including the US, Portugal and Russia. In addition to creating your own original titles, it also works for other developers.

Embracer bought Saber for $525 million (about Rs 4,349 crore) in 2020 as part of a spending spree that saw Chief Executive Officer Lars Wingefors acquire at least 27 companies. Several acquisitions, such as Demiurge Studios, based in Boston, and New World Interactive, based in Denver, were folded into Sabre.

Over the past year, as interest rates rose and a $2 billion (roughly Rs. 16,569 crore) partnership with a gaming group backed by Saudi Arabia’s sovereign wealth fund failed, Embracer has been slashing costs. The debt-laden company has closed several subsidiaries, canceled projects and plans to sell more divisions.

The $500 million figure includes an option for Saber to bring together several Embracer subsidiaries, the person said.

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