After acquiring several games development studios and popular IPs, Swedish holding company Embracer Group saw its stock plummet a few months ago after a deal worth $2 billion in revenue over six years fell apart. This led to some restructuring within the company with layoffs, game cancellations, and forgoing of some studios. While details of the failed deal were not made public, a new Axios report sheds some light into the matter.

According to the outlet which talked with four sources familiar with the deal and reviewed related documentation, the multi-billion deal would have involved the Saudi government-funded Savvy Games Group. Their investment would assist games development and publishing from Embracer, as a push from the Saudi company to make its imprint in the gaming industry. Savvy has in fact committed to investing $38 billion in this industry and has already bought $1 billion worth of Embracer shares. The Swedish company was criticised for this deal considering Saudi Arabia's poor human rights records.

While the Axios report reveals Savvy's involvement in the deal, the reason for them walking out is not clear.

SOURCE

 

[ChibiMofo]

Wow! A company saying "no" the banana republic Saudi Arabia's blood money! You just don't see that much these days. I wonder which game company the murderers in the Saudi royal family will attempt to buy (influence) next?

 

[Prans]

Wow! A company saying "no" the banana republic Saudi Arabia's blood money! You just don't see that much these days. I wonder which game company the murderers in the Saudi royal family will attempt to buy (influence) next?

As it stands, it's more like Savvy that backed out than Embracer saying no. The Saudi-backed Savvy Games also already bought $1 billion worth of Embracer shares which they didn't say no to.

 

[Deleted member 194275]

Wow! A company saying "no" the banana republic Saudi Arabia's blood money! You just don't see that much these days. I wonder which game company the murderers in the Saudi royal family will attempt to buy (influence) next?

The deal failed, but nowhere is told that was because of human rights. Probably it was not.

 

[eyeliner]

Wow! A company saying "no" the banana republic Saudi Arabia's blood money! You just don't see that much these days. I wonder which game company the murderers in the Saudi royal family will attempt to buy (influence) next?

I believe you need to read the article again.
Savvy backtracked, not Embracer.

Its obvious that money was for the football players.

 

[Lazyboss]

It's always funny when any mention of Saudi Arabia people will attach "human rights" with it, while it's true some of the royals there treat others like shit, but in Europe and US government treats "everyone" like slaves.

 

[FAST6191]

Wow! A company saying "no" the banana republic Saudi Arabia's blood money! You just don't see that much these days. I wonder which game company the murderers in the Saudi royal family will attempt to buy (influence) next?

See it often enough, though it is usually a more softly softly approach to avoid pumping up oil prices*.

*Saudi quite rightly understand the resource trap so are trying to diversify their income streams in case the oil market craters (whether the filthy hippies get their wish, something gets discovered elsewhere or otherwise). However being a hardcore Islamic theocracy they can't exactly become a financial hub (no interest in Islam kind of killer for that one), tourism does OK but still nothing too much and that also means service economy is dubious. In the meantime though they continue to keep a hold on the market (see the US presidents various going on a begging mission to get them to produce more, and supplying them with all sorts of fun weapons). In my case knocking around some science research funding then their sovereign wealth fund was offering quite ridiculous sums that would be insanely attractive to such researchers (funding research is a massive part of the job, and most of the traditional paths have been taken out back and shot 10-15 years ago). If you so much as considered it then you or your bosses even would get a nice phone call promising all kinds of fun and games if you did go down that path. Heard a few others from business world wherein you would watch your government contracts evaporate, clients get a bit hesitant to renew their contracts, extent favours and the like as well as need for a big boy audit or three.

 

[Gamer90Kirby]

Having investment funds pumping money into the gaming industry only means good things to come for the future of gaming.

 

[gaga941021]

Wow! A company saying "no" the banana republic Saudi Arabia's blood money! You just don't see that much these days. I wonder which game company the murderers in the Saudi royal family will attempt to buy (influence) next?

Not really. It's the other way around.

 

[Purple_Shyguy]

I don't want games funded by Saudi "Chop off their heads" Arabia

 

[Viri]

Savvy seen Saints Row and NOPED out.

 

[lordofcombo]

I just love reading your rants on Saudi Arabia.Your tears are so tasty.Cry more please.