Saber will become a privately owned company with around
3,500 employees, said the person, who asked not to be identified discussing
nonpublic information. The company plans to continue developing a remake of
Star Wars: The Knights of the Old Republic, the highly anticipated game that
was removed from its previous developer Aspyr Media in 2022.
The deal will be one of Embracer’s largest moves yet in an
ongoing cost-cutting initiative that has seen the company lay off employees and
shutter studios around the world over the past year.
Saber and Embracer declined to comment.
Saber, the developer of games such as Snowrunner and World
War Z, operates studios in several countries, including the US, Portugal and
Russia. In addition to making its own original titles, it does work for other
developers.
Embracer purchased Saber for $525 million in 2020 as part of
a spending spree in which Chief Executive Officer Lars Wingefors acquired at
least 27 companies. Several of the acquisitions, such as Demiurge Studios,
based in Boston, and New World Interactive, based in Denver, were folded into
Saber.
Over the past year, as interest rates soared and a $2
billion partnership with a gaming group backed by Saudi Arabia’s sovereign
wealth fund fell through, Embracer has been shedding costs. The debt-saddled
company has shut down several subsidiaries, canceled projects and is looking to
sell more divisions.
The $500 million figure includes an option for Saber to
bring along multiple Embracer subsidiaries, the person said.
© Bloomberg L.P.