The Rise and Fall of Embracer (aka THQ Nordic)

[BlackAdderBG]

the elex 2 video was awful, and no release date

elex fans cucked AGAIN

Good, Elex was terrible. Combat was worse than DA:I and that says a lot.

 

[Endemic]

https://embracer.com/wp-content/uploads/2021/11/1497404.pdf

“In the past 12 months, we have made 37 acquisitions and expect to do a similar amount of transactions over the coming 12 months. We currently have a large range of active processes and dialogues, including a good number of signed exclusive term sheets.”

 

[LESS T_T]

Another great embrace in the works. Asmodee for 2.75 billion euro. https://embracer.com/release/embrac...ee-that-would-form-the-ninth-operating-group/

EMBRACER GROUP INTENDS TO MAKE A STRATEGIC ACQUISITION OF LEADING BOARD GAMING GROUP ASMODEE THAT WOULD FORM THE NINTH OPERATING GROUP

Embracer Group AB ("Embracer"), has today entered into exclusive negotiations to acquire Financière Amuse Topco SAS (“Asmodee”) from funds advised or managed by PAI Partners SAS (“PAI”) and the other shareholders of Asmodee. Subject to completion of the consultation of the relevant works council of the Asmodee group on this proposed transaction, and exercise by the shareholders of Asmodee of their option to sell, Embracer and the shareholders of Asmodee would execute a share purchase agreement to complete the transaction. If the acquisition is eventually completed, it would mark a strategic step broadening the Embracer Group eco system, since Asmodee and Embracer share a natural and strong bond in their strategy and cultures.

Asmodee in brief

Asmodee, with its headquarters in Paris, France, was founded in 1995, and is a leading international publisher and distributor for board games, trading cards and digital board games with over 39 million games sold annually in more than 50 countries. Through 22 fully owned studios and 300+ IPs, Asmodee creates a dynamic transmedia experience for players across a variety of digital and physical platforms. Asmodee has a portfolio of 970+ games, of which some of the iconic game titles include Catan, Ticket to Ride, Pandemic, Dixit, Splendor, 7 Wonders, Just One, Dobble/Spot it!, Azul, Unlock!, Bezzerwizzer and Exploding Kittens. Asmodee also establishes licensing and distribution partnership with leading entertainment and technology companies on successful IPs such as Pokémon, Magic: The Gathering, Disney, Harry Potter, Lord of the Rings, Star Wars, Marvel, Dungeons & Dragons and Carcassonne. With a global force of over 2,300 FTEs, Asmodee operates in 50+ jurisdictions across Europe, North America, South America and Asia, of which 21 with direct presence.

Asmodee is to date owned by PAI and certain minority shareholders of Asmodee. Asmodee’s CEO Stéphane Carville together with his management team would continue to lead the new operating group. Following completion of the transaction, PAI would hold approximately four percent of the shares in Embracer, and the minority shareholders would hold up to four percent of the shares in Embracer depending on to what extent and at what terms the agreed put and call options would be exercised

Background and Rationale

If the transaction is completed, this would mark a transformative step in Embracer’s strategy within gaming and entertainment as outlined at the September AGM:

• Creates Europe’s largest gaming group and establishes an important market leading position in board games, a category that is highly complementary to PC, console, VR and mobile games and with appealing long term organic growth outlook.
• Offers the opportunity to cross-fertilise IP and strengthen licensing partnerships across PC, console, VR, mobile, board and trading card games.
• Strong foundation for the future development of transmedia IPs.
• Ability to leverage the omni-channel distribution network to drive efficiencies across existing and new markets.
• Providing a proven platform for value-accretive M&A, complemented by a sizeable funnel for future opportunities within board games, trading card games & collectables.
• Shared strong cultural fit, with a similar integrated model operating across the value chain, from IP through to publishing and distribution.
• Enhancing the new Group’s strong financial profile, with added diversity, predictability, resilience, and immediate accretion to adjusted earnings per share and free cash flow per share.

If the acquisition is completed, Embracer would onboard one of the market leading independent global players in a large, growing, highly resilient board gaming market with proven experience of creating long-lasting franchises and delivering strong original content. The acquisition would create Europe’s largest gaming group, and would enable collaboration within Embracer in terms of development, publishing, technology, IPs as well as a platform for further M&A. Asmodee would become the ninth operating group, continuing to operate independently.

 

[thesecret1]

Sooner or later, every game studio will be Embraced™. Resistance is futile.

 

[The Wall]

Where the fuck do they get this amount of money?! We're talking dozens of billions €. If they are non-woke, great, if they are woke or get woke? European digital entertainment ia fucked for a decade at least. We'll see...

 

[rusty_shackleford]

Where the fuck do they get this amount of money?!

It's a good question. I only skimmed the financial report above, but they're acquiring companies with revenues that far outstrip THQ Nordic. Isn't that what Embracer was essentially founded by?
Also, some of the acquisitions are just strange.

Embracer Group acquired 70% in Grimfrost, a Sweden-based e-commerce specialist and
a leading player with a global brand within high-quality Viking merchandise.

I'm imagining some chad just decided he wanted some viking apparel so he bought an entire company dedicated to viking merchandise

https://grimfrost.com/
wtf lol

 

[toro]

Where the fuck do they get this amount of money?! We're talking dozens of billions €. If they are non-woke, great, if they are woke or get woke? European digital entertainment ia fucked for a decade at least. We'll see...

stock market shenanigans...

https://www.gamesindustry.biz/artic...shares-to-raise-money-for-future-acquisitions

Edit: This company seems to be a greed experiment out of control: they bought all these small companies and their IPs in order to increase their shares values, then they sell their inflated shares and buy more companies. Repeat until it breaks.

 

[The Wall]

They can be bringers of either Great Incline or Great Decline. Jagged Alliance 3, Expeditions: ROME and Elex 2 will show which way they lean. If Kingdom Come 2's protagonist has black best friend in XV century Bohemia, they are dead to me

The fact is: they pretty much own every AA and A good IP from last 20+ games and all good studios in Europe. That amount of power can transform them in either New Interplay or EA. Time will tell

 

[rusty_shackleford]

Also, apparently Amalur was one of their better selling games of the quarter despite releasing a year ago.
I thought it did only OK, especially since it's just a remaster. Guess console sales really buoyed it.

 

[The Wall]

Yeah, they just released DLC for it. Not sure if good. Also released 3 shitty DLCs for Titan Quest. MiMiMi is also their servant, Blades of Shogun, Desperados 3 were very good. They are hit and miss so far, in 2021 they released 0 good games. Their This is President was woke af (President of America having 2/3 black cabinet in promo material, WTF?!) and has terrible steam reviews. They are biggest enigma in gaming

 

[rusty_shackleford]

 

[The Wall]

Pozzed and Woke, but driving within speed limit. My nose never lies, it can smell woke though the screen. Just as I thought

 

[toro]

They can be bringers of either Great Incline or Great Decline. Jagged Alliance 3, Expeditions: ROME and Elex 2 will show which way they lean. If Kingdom Come 2's protagonist has black best friend in XV century Bohemia, they are dead to me

The fact is: they pretty much own every AA and A good IP from last 20+ games and all good studios in Europe. That amount of power can transform them in either New Interplay or EA. Time will tell

They will be dead as soon as they will not be able to sustain the acquisitions cycle because of whatever reasons.

Also I suspect that they are over-leveraged therefore (1) they don't have the funds for real AAA-titles and (2) whoever fucks up will be terminated asap.

 

[lycanwarrior]

Also, apparently Amalur was one of their better selling games of the quarter despite releasing a year ago.
I thought it did only OK, especially since it's just a remaster. Guess console sales really buoyed it.

That's awesome hear, loved the KoA remaster (never played the original).

With the new FATESWORN DLC (hint hint) out, perhaps this will lead to a new sequel?

 

[deuxhero]

Another great embrace in the works. Asmodee for 2.75 billion euro. https://embracer.com/release/embrac...ee-that-would-form-the-ninth-operating-group/

EMBRACER GROUP INTENDS TO MAKE A STRATEGIC ACQUISITION OF LEADING BOARD GAMING GROUP ASMODEE THAT WOULD FORM THE NINTH OPERATING GROUP

Embracer Group AB ("Embracer"), has today entered into exclusive negotiations to acquire Financière Amuse Topco SAS (“Asmodee”) from funds advised or managed by PAI Partners SAS (“PAI”) and the other shareholders of Asmodee. Subject to completion of the consultation of the relevant works council of the Asmodee group on this proposed transaction, and exercise by the shareholders of Asmodee of their option to sell, Embracer and the shareholders of Asmodee would execute a share purchase agreement to complete the transaction. If the acquisition is eventually completed, it would mark a strategic step broadening the Embracer Group eco system, since Asmodee and Embracer share a natural and strong bond in their strategy and cultures.

Asmodee in brief

Asmodee, with its headquarters in Paris, France, was founded in 1995, and is a leading international publisher and distributor for board games, trading cards and digital board games with over 39 million games sold annually in more than 50 countries. Through 22 fully owned studios and 300+ IPs, Asmodee creates a dynamic transmedia experience for players across a variety of digital and physical platforms. Asmodee has a portfolio of 970+ games, of which some of the iconic game titles include Catan, Ticket to Ride, Pandemic, Dixit, Splendor, 7 Wonders, Just One, Dobble/Spot it!, Azul, Unlock!, Bezzerwizzer and Exploding Kittens. Asmodee also establishes licensing and distribution partnership with leading entertainment and technology companies on successful IPs such as Pokémon, Magic: The Gathering, Disney, Harry Potter, Lord of the Rings, Star Wars, Marvel, Dungeons & Dragons and Carcassonne. With a global force of over 2,300 FTEs, Asmodee operates in 50+ jurisdictions across Europe, North America, South America and Asia, of which 21 with direct presence.

Asmodee is to date owned by PAI and certain minority shareholders of Asmodee. Asmodee’s CEO Stéphane Carville together with his management team would continue to lead the new operating group. Following completion of the transaction, PAI would hold approximately four percent of the shares in Embracer, and the minority shareholders would hold up to four percent of the shares in Embracer depending on to what extent and at what terms the agreed put and call options would be exercised

Background and Rationale

If the transaction is completed, this would mark a transformative step in Embracer’s strategy within gaming and entertainment as outlined at the September AGM:

• Creates Europe’s largest gaming group and establishes an important market leading position in board games, a category that is highly complementary to PC, console, VR and mobile games and with appealing long term organic growth outlook.
• Offers the opportunity to cross-fertilise IP and strengthen licensing partnerships across PC, console, VR, mobile, board and trading card games.
• Strong foundation for the future development of transmedia IPs.
• Ability to leverage the omni-channel distribution network to drive efficiencies across existing and new markets.
• Providing a proven platform for value-accretive M&A, complemented by a sizeable funnel for future opportunities within board games, trading card games & collectables.
• Shared strong cultural fit, with a similar integrated model operating across the value chain, from IP through to publishing and distribution.
• Enhancing the new Group’s strong financial profile, with added diversity, predictability, resilience, and immediate accretion to adjusted earnings per share and free cash flow per share.

If the acquisition is completed, Embracer would onboard one of the market leading independent global players in a large, growing, highly resilient board gaming market with proven experience of creating long-lasting franchises and delivering strong original content. The acquisition would create Europe’s largest gaming group, and would enable collaboration within Embracer in terms of development, publishing, technology, IPs as well as a platform for further M&A. Asmodee would become the ninth operating group, continuing to operate independently.

Now that they own Asmodee (who bought FFG and with it WEG's Star Wars system) and EA's exclusivity on Star Wars digital goods is over, how about they offer official digital versions of d6 Star Wars?

 

[LESS T_T]

Tencent embraces things too? Well Embracer embraces some from one of the big Chinese publishers, Perfect World: https://embracer.com/release/embrac...ement-to-acquire-perfect-world-entertainment/

Specifically it takes western parts of Perfect World, not including Chinese HQ. It includes Cryptic Studios.

Also embracing another big paper business. Dark Horse. https://embracer.com/release/embrac...rk-horse-and-forms-the-tenth-operative-group/

And another smaller things.

Shiver Entertainment, Miami-based port shop: https://embracer.com/release/embracer-group-acquires-shiver-entertainment/

DIGIC, animation studio in Hungary that did some game cinematics: https://embracer.com/release/embracer-group-enters-into-agreement-to-acquire-digic/

Spotfilm Networx, VOD thing in Germany, acquired under Koch Media: https://embracer.com/release/embracer-group-enters-into-agreement-to-aquire-spotfilm-networx/

 

[rusty_shackleford]

Tencent embraces things too? Well Embracer embraces some from one of the big Chinese publishers, Perfect World: https://embracer.com/release/embrac...ement-to-acquire-perfect-world-entertainment/

Specifically it takes western parts of Perfect World, not including Chinese HQ. It includes Cryptic Studios.

Nothing but good things can come from this. PWE(and by extension, Cryptic) is one of the worst MMO publishers.

Interestingly, Embracer is now publishing both major Star Trek and Star Wars games now right?

 

[Rieser]

Wingefors has stated before that the strategy is pretty simple; they offer far less money than American or Chinese companies do but instead create shareholder value.

Kind of an interesting guy. Came from a blue collar family and didn't do very well in school but had an eye for business and was making more than enough already in his teens, prompting him to drop out of high school. Now a billionaire and retains about 45% of the votes in the Embracer share.

They can be bringers of either Great Incline or Great Decline. Jagged Alliance 3, Expeditions: ROME and Elex 2 will show which way they lean. If Kingdom Come 2's protagonist has black best friend in XV century Bohemia, they are dead to me

The fact is: they pretty much own every AA and A good IP from last 20+ games and all good studios in Europe. That amount of power can transform them in either New Interplay or EA. Time will tell

They will be dead as soon as they will not be able to sustain the acquisitions cycle because of whatever reasons.

Also I suspect that they are over-leveraged therefore (1) they don't have the funds for real AAA-titles and (2) whoever fucks up will be terminated asap.

I'd be surprised if they are over-leveraged. Doesn't seem to be the case when looking at the numbers. Moreover, having read a few interviews with Wingefors he seems adamant about long-term perspective and that the issuance of equity will seize when cash flow is deemed "adequate", but that they'll continue to buy properties as long as he's in charge. It's also worth noting that the strategy of acquiring companies buy offering shares includes clawback, meaning that their larger acquisitions (like Saber) need to hit specific marks as established by Embracer, otherwise the shares will revert.

As for AAA - buying big AAA-properties isn't realistic (and is something that'd probably make them over-leveraged plus requiring loans, something Wingefors has been very vocal in his hatred of ) considering Embracer simply isn't a very big company compared to the bigger dicks in the industry. Getting Borderlands through Gearbox is probably about as big as they'll go for now. It also doesn't align with the company strategy given that they focus on low risk investment.

 

[Dodo1610]

Kotor remake has a 70mio budget. So they are interested in projects that go beyond their usual AA stuff.

Also Borderlands IP and games are owned by Take Two which are much more valueble than Gearbox.

 

[The Wall]

All I know, every single game released by them in 2021 was trash. From Apatche Simulator LXIX to latest DLC for Titan Quest. All trash. We'll see what 2022 brings, starting with Expeditions:ROME and ELEX 2

 

[toro]

All I know, every single game released by them in 2021 was trash. From Apatche Simulator LXIX to latest DLC for Titan Quest. All trash. We'll see what 2022 brings, starting with Expeditions:ROME and ELEX 2

ELEX 2 will be mediocre trash but people will forgive PB because it reminds them of Gothic.

However I'm 100% sure that ELEX 2 will not surpass The Chronicles of Myrtana: Archolos.

It's quite telling about the game industry: fans can create better content than professional developers.

 

[mediocrepoet]

It's quite telling about the game industry: fans can create better content than professional developers.

I'd say in the last year or two, indies and fan projects have been eclipsing the big budget space both in terms of delivering relatively bug free games as well as projects that are more interesting and don't feel soulless.

 

[Ismaul]

ELEX 2 will be mediocre trash

how can you even say such things

 

[Infinitron]

Showcase on August 12th:

Brace yourselves!
We are hosting our second annual digital showcase on August 12th at 12.00 AM PDT / 3 PM EDT / 8 PM BST / 21:00 CEST / 10 PM EEST on YouTube, Twitch and Steam! We're going to announce new games as well as provide you with updates on previously announced titles.

Which games exactly or who will be the host of show are still top secret, but you'll get hints, when we are getting closer to that date. But you can look forward to everything from intense, dark and gritty to light, colorful and just plain fun! And if you turn in early, you can also get a glimpse on what our friends from HandyGames are up to. Same procedure as every year!

Content creators all over the world of any size are invited to co-stream the showcase on August 12th on their own channels. If you’d like to participate, or if you have any questions, please reach out to: contentcreators@thqnordic.com

 

[LESS T_T]

Embracer embraces Beamdog via Aspyr. https://www.linkedin.com/pulse/aspyr-media-embracer-group-company-enters-agreement-acquire-/

https://rpgcodex.net/forums/threads/beamdog-to-be-acquired-by-aspyr.142647/