Square Enix sells western studios and IPs such as Tomb Raider, Deus Ex, Legacy of Kain, and more
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May starts with the announcement that Square Enix is selling their western studios and over 50 intellectual properties (Tomb Raider, Deus Ex, Legacy of Kain, etc) to Embracer Group for just $300m. The sale is set to go through by September 2022.
This sale gives Embracer ownership of studios Crystal Dynamics, Eidos Montreal and Square Enix Montreal (name change likely happening in the future), which amounts to approximately 1,100 employees worldwide.
”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 CEO of Embracer Group in a press release.
With regards to the franchises and studios that are part of this deal, this is what Embracer has to say:
The collection of studios represents a world-class creative team of ~1,100 employees across three studios and eight global locations, including two of the most reputable AAA studios across the industry in Crystal Dynamics and Eidos Montréal. The studios possess a unique ability to deliver blockbuster hits decade after decade. The acquisition brings a compelling pipeline of new installments from beloved franchises and original IPs, including a new Tomb Raider game. The acquisition builds on Embracer’s mission of creating a leading independent global gaming and entertainment ecosystem. Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities.
This deal doesn’t mean Square Enix is no longer handling western intellectual properties as Square confirms in a press release regarding the deal that western operations “will continue to publish franchises such as Just Cause, Outriders, and Life is Strange”
The next big question is – why did Square Enix sell? Well, here’s Square Enix’s reasoning for the sale:
The Transaction will assist the Company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain. In addition, the Transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud. The move is based on the policy of business structure optimization that the Company set forth under the medium-term business strategy unveiled on May 13, 2021.
For added context for this Square Enix sale, the Embracer Group’s last acquisition was Gearbox Entertainment, as they bought the studio for $1.3 billion back in 2021.
