Swedish holding company Embracer Group AB THQQF, known for acquiring various gaming entities including Gearbox Entertainment and rights for Lord of the Rings and Tomb Raider, experienced a stock drop due to a collapsed $2 billion deal earlier this year.
The partner who withdrew was revealed to be Savvy Games Group, a subsidiary of the Saudi Arabian Public Investment Fund (PIF) led by crown prince Mohammed bin Salman, Axios reported.
Savvy's involvement was revealed by four confidential sources and related documentation to Axios.
The reasons for the withdrawal from this deal remain uncertain. Embracer had already received a $1 billion investment from the Saudi Public Investment Fund in 2022.
Embracer is set to unveil its recent quarterly earnings, potentially outlining cost-cutting measures scheduled for implementation by Oct. 1. Certain studio projects within Embracer are being terminated, with studio Campfire Cabal recently announcing its closure due to the company's restructuring efforts.
During the past two years, the kingdom's Public Investment Fund emerged as a major stakeholder in numerous prominent gaming enterprises, such as Nintendo ADR NTDOY, Take-Two Interactive Software Inc TTWO, and Electronic Arts Inc EA.
In April, the PIF announced it would make an investment of $38 billion with the aim of establishing the country as a significant player in the global gaming market.
Read Next: From Oil To Games: Saudi Arabia Pumps $38 Billion To Become A Video Game Hub
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