In a massive, Monday morning announcement, Embracer Group announced they have reached a deal with Square-Enix to acquire three studios (Eidos Montreal, Crystal Dynamics, and Square-Enix Montreal) along with over 50 IPs. The IPs include Tomb Raider, Deus Ex, Thief, Legacy of Kain, and more.
The official announcement can be found here and includes the following statement from Embracer:
”We are thrilled to welcome these studios into the Embracer Group. We recognize the fantastic IP, world class creative talent, and track record of excellence that have been demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and become a great part of Embracer,” says Lars Wingefors, Co-founder and Group CEO, Embracer Group.
”Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment,” says Phil Rogers, Square Enix America and Europe CEO.
According to the report, the acquisition includes around 1,100 employees across 3 studios and 8 global locations. The report out of Square-Enix indicates the deal was for $300 million and will allow them to invest further in blockchain, AI, and the cloud. For reference, Square-Enix still retains the rights to Just Cause, Life is Strange, and Outriders.
This is a very interesting acquisition. Crystal Dynamics and the Eidos and Square-Enix studios out of Montreal were some of the most talented studios within Square-Enix proper and it goes without saying that Tomb Raider alone is a massive IP. To acquire this level of talent and IP ownership for $300 million seems like a deal for Embracer. We’ll discuss more heavily on this week’s Bitcast!