Swedish group of video games and media holding hug group should have entered into an important strategic partnership this year worth $2 billion, which was to set a new benchmark for the gaming industry. This May, the deal fell through and the company’s stock fell 40%, forcing it to cut costs, cancel projects and lay off employees.
The Embracer Group didn’t say anything else about the mysterious partnership, so it was assumed that it was Microsoft, Sony, Netflix, Amazon, Tencent, or NetEase. These are the largest players who would have the funds for such investments.
However, the Axios server recently discovered that the investment had to come from Savvy Games Groupfunded by Saudi Arabia. In fact, this is an investment fund founded by a scandalous prince. Mohammed bin Salman. According to Axios, two billion dollars were to be invested in the development and release of games over six years.
Savvy Games, led by CEO Brian Ward (a longtime head of Activision Blizzard and Electronic Arts), acquired an 8.1% stake in Embracer Group for $1 billion last year. But no one knows why the $2 billion deal didn’t go through. closed. Embracer Group CEO Lars Vingefors said the deal fell through after only seven months of negotiations.
A month before the announcement of the failed deal, we learned that Saudi Arabia has prepared 38 billion dollars, which intends to invest in the video game industry. This is a strategy aimed at ensuring that the country does not depend on oil in the future. Prince Mohammed bin Salman wants to attract major developers and publishers to Saudi Arabia to create big games in his country.
Source :Indian TV
