Swedish gaming conglomerate Embracer Group has raised more than SEK 5.75 billion in proceeds — amounting to approximately $648 million — following a placement of new B shares.
If you're not quite familiar with Embracer Group, it's a Swedish-based company that has been snapping up game developers left and right over the last several years. It has dozens of game studios and publishers under its banned, including Koch Media/Deep Silver (Metro 2033 game franchise), Coffee Stain (Satisfactory), Sabre Interactive (SnowRunner), and others. It was founded as a parent company to THQ Nordic, and went by that name as well for a time.
This move saw the company's co-founders sell approximately 9 million of their own existing shares as part of this process. Ultimately, Embracer Group is seeking to attract new long-term shareholders and establish a firm long-term ownership of the company amongst its top investors.
Embracer Group expected to see "substantial growth" throughout 2020, owing to its upcoming releases of Biomutant, Destroy All Humans, and other games. While these are certainly fine titles, the company notably eschewed releasing any AAA games in 2020, killing any hopes of a potential Saints Row 5 release this year. That said, the company plans on aiming for at least one AAA game to be released every year going forward.
What Will Embracer Group Do With Its New Funding?
With several hundred million more in the bank, one might wonder what exactly Embracer Group will be doing with the money. The company states that it will continue its plans to bring more game publishers, developers, and related assets under its umbrella.
Embracer Group has been buying game developers and publishers in recent years and will likely continue to do so; one such example was its 2018 purchase of Koch Media group at a price of €91.5 million (≈$108 million). The company could use this funding to purchase several other similarly-sized studios or fund the development of new products from its existing subsidiaries
What do you think of Embracer Group bringing in more than half a billion dollars? Which of their games are you most looking forward to? Let us know in the comments below!