Out of seemingly nowhere last night, Embracer Group announced a wealth of acquisitions. Already the proprietors of a number of studios producing a wide-range of games, their acquisitions this morning include small gaming companies and classic gaming IPs, to Middle Earth Enterprises and the rights to everything Lord of the Rings and Hobbit. We attempt to break it all down below including what it could mean for the future.
First it may be a good time to explain who and what Embracer Group is. This is taken directly from their main site:
Embracer Group is a global group of entrepreneurial businesses in the gaming and entertainment industry. Through our decentralized operating model, we provide entrepreneurs and teams with the resources they need to succeed and unleash their full potential. Our growing eco system creates synergies through shared knowledge and collaboration. We believe that the more diverse we are, the stronger we will become.
With our headquarter in Karlstad, in the Swedish province of Värmland, Embracer Group engages more than 14 000 people in over 40 countries, with a track record of combining organic and acquired growth. Over the coming decades, we are building something unprecedented and sustainable together, based on our shared philosophy of trust, a long-term mindset and embracing different perspectives.
We’ve previously reported on other Embracer acquisitions which have included THQ Nordic, Sabre Interactive, Metro Interactive, and a number of other companies and IPs.
Likely the largest acquisition announced overnight is of Middle Earth Enterprises. MEE encompasses all of the media rights to The Lord of the Rings and The Hobbit franchises including books, movies, games, etc…
- In total this acquisition encompasses “the worldwide rights to motion pictures, video games, board games, merchandising, theme parks and stage productions relating to the iconic fantasy literary works The Lord of the Rings trilogy and The Hobbit by J.R.R. Tolkien.”
- The purchase price was not disclosed.
Embracer Group AB (”Embracer”), through its wholly owned subsidiary Freemode[1], has entered into an agreement to acquire Middle-earth Enterprises, a division of The Saul Zaentz Company, which owns a vast intellectual property catalogue and worldwide rights to motion pictures, video games, board games, merchandising, theme parks and stage productions relating to the iconic fantasy literary works The Lord of the Rings trilogy and The Hobbit by J.R.R. Tolkien, as well as matching rights in other Middle-earth-related literary works authorized by the Tolkien Estate and HarperCollins, which have yet to be explored.
Embracer Group has also acquired Tuxedo Labs.
- Tuxedo Labs is a small Swedish studio of 6 developers. They are best known for the physics-based PC game Teardown.
- The purchase price was not disclosed.
“Tuxedo Labs has created revolutionary technology that opens up vast possibilities for emergent gameplay and user-created content. Their hit title Teardown has the potential to become the standard-bearing platform for physics simulation in games. Many of us at Saber and our subsidiary 3D Realms have worked with Dennis since the mid-2000’s. We are super excited to welcome Dennis, their CEO Marcus Dawson, and the rest of the Tuxedo Labs team into the Embracer family,” said Matthew Karch, CEO of Saber Interactive.
Embracer Group has also acquired Tripwire Interactive.
- Tripwire is best known for the games Killing Floor and Maneater.
- The purchase price was not disclosed.
“Tripwire is a unique studio. Since their founding in 2005, they have grown, through tremendous leadership and vision, into one of the last great independent developers. I have looked up to Tripwire as an example of how to design and execute on games. Saber has Tripwire to thank for many of our own successes and I am proud to welcome them into our family,” said Matthew Karch, CEO of Saber Interactive.
Embracer Group has also acquired Singtrix.
- Singtrix is a company located in Los Angeles and “is an award-winning creator of industry leading vocal processing effects technology for karaoke, gaming, and entertainment.”
- The purchase price was not disclosed
“The Singtrix team is one of the most highly regarded innovators in music gaming, vocal processing, and entertainment. Their proven track record behind groundbreaking mass music franchises and inspiring singing experiences is without parallel and makes them a perfect fit for Freemode’s plan to vastly expand its entertainment offerings”, says Lee Guinchard, CEO of Freemode.
Embracer Group has also acquired Limited Run Games.
- Limited Run Games is a leader in publishing physical games and owns the Carbon Engine that ports retro games to modern platforms.
- The purchase price was not disclosed.
”As an avid collector, I’ve admired Limited Run’s collectors’ editions. They’ve built a strong brand that resonates with players. We see opportunities for Limited Run to further grow their business with the Carbon Engine by bringing back classic games, and extend their footprint geographically through synergies with other companies within Embracer Group”, says Lars Wingefors, CEO of Embracer Group
Embracer Group forms Operating Group “Embracer Freemode” and acquires Tatsujin and Bitwave Games.
- Freemode is an operating group comprised of additional gaming and entertainment companies.
- Tatsujin is led by Masahiro Yuge, one of the founders of the iconic arcade games studio Toaplan known for games such as Truxton, Snow Bros and Flying Shark.
- Bitwave Games is a Swedish studio with a focus on retro games.
- No specific financial details were shared.
“With our announcement of Freemode, we demonstrate our continued commitment to diversified growth into new areas, ultimately preserving yesterday`s classics in addition to expanding further tomorrow’s gaming and entertainment experiences,” says Lars Wingefors, Embracer AB Group CEO.
Embracer also noted that another studio acquisition was completed but not formally announced today.
- The studio is in the PC/Console gaming space.
- It would rank as the “third or fourth” largest acquisition announced today.
We’ll have more on this one specifically as it develops.
Our Take
Embracer Group has long signaled that it is a serious player in the gaming industry and this morning’s announcements only serve to further that commitment. With a very wide range of talent, studios, technologies, and IPs, Embracer Group will likely have a large impact on gaming for a very long time to come.
