The Swedish holding company Embracer Group has made waves in recent years with its rapid expansion through acquisitions of game studios and IPs. Starting from humble beginnings reselling used games, Embracer has grown into a juggernaut holding over 120 studios and 850 game IPs. Its recent $300 million purchase of Tomb Raider developer Crystal Dynamics made headlines around the gaming world. We take a look at how Embracer Group embraced acquisitions to become a giant in the Amplifier game industry.
Early Days Buying Bankrupt Game Assets
Embracer Group’s origins trace back to founder Lars Wingefors reselling used comic books and games as a teenager in the 1990s. He formally established the business Nordic Games in 2011, which made its first major purchase in 2013 – acquiring games like Darksiders and Red Faction from the bankrupt publisher THQ. This established Embracer’s long-term strategy of buying assets from troubled or bankrupt studios.
Big Deals with Koch Media and Saber Interactive
Embracer made its first 9-figure acquisition in 2018, paying $150 million for Koch Media and its subsidiaries like Deep Silver. Koch brought prominent studios like Volition under Embracer’s umbrella. Embracer later acquired Saints Row developer Deep Silver Volition directly for $125 million. Saber Interactive joined in 2020 for up to $525 million, giving Embracer more expertise in porting games to new platforms.
Owning Triple-A IPs Like Tomb Raider
The purchase of Square Enix’s Western studios made Embracer the owner of Tomb Raider, Deus Ex, Thief and other major game IPs. Analysts think Square Enix sold these assets to invest more heavily in blockchain and web3 gaming. While risky, analysts remain cautiously optimistic about the future of Embracer’s new studios. If they can deliver hits on beloved franchises, Embracer’s bet will pay off big.
An Unstoppable Acquisition Machine
Embracer shows no signs of slowing its acquisition spree, already owning over 120 game studios spanning PC, console, mobile and board games. With its diverse portfolio of assets, Embracer Group has embraced acquisitions to become a gaming giant. Its future rests on these studios delivering hit games to realize the value of its IP holdings.
Starting from reselling used games, Embracer Group has exploded through acquisitions of distressed game assets and studios. It now stands among the largest gaming companies, owning over 850 IPs. Its future depends on acquired studios like Crystal Dynamics sustaining the value of IPs like Tomb Raider.