Embracer CEO Wingefors Declares Restructuring Process Complete
– 2 min read
The restructuring process initiated by Embracer Group is complete, said CEO Lars Wingefors at the investor conference following the sale of Gearbox. He believes the company is well on its way to becoming a "more focused" business. The group has no plans for M&A activity for the time being.
Following the divestment of Gearbox Software before Easter, Embracer Group CEO Lars Wingefors announced almost in passing at the investor conference (via Rock Paper Shotgun) that the restructuring process of the Swedish group has been completed. As part of this process, Saber Interactive, including 4A Games and Zen Studios (both of which were considered acquisition options) have been separated, according to the Saber website, and numerous studios have been closed, including Free Radical Design, Volition and Campfire Cabal. The future of THQ Nordic's Piranha Bytes subsidiary is currently uncertain, as the company is still looking for a buyer for the venerable studio based in Essen. Compared to the last financial year, which ended in March 2023, the Embracer Group has shed almost 1,400 jobs. Cuts have also been made at Black Forest Games in Offenburg, Fishlabs in Hamburg, Eidos Montreal and Lost Boys Interactive. At least 42 game projects have been cancelled.
"We are ending the restructuring programme now, end of March, and the Gearbox restructuring process has been part of that programme," Wingefors is quoted as saying. He also said that the parts of the company that were spun off would have had a "negative cashflow" and that this would have affected the Group's cashflow. "Now we are getting approached, I would say not quite daily, but on a weekly basis, by companies that would like to acquire certain assets within the group. And I've been very clear that they're not for sale (...)". They are on their way to becoming a "leaner and more focussed company".
At the same time, the Embracer CEO made it clear that it is far too early to talk about revving up the M&A engines: "Now we are in the late phases of the consideration into the future of the group, and that's our highest focus and priority – how we set up ourselves and structure ourselves, and utilise our assets we have within the group, and have them work together, and how we leverage them better working together, utilising different functions, I think that's our focus right now, to increase profitability and cashflow generation, by simply making better products and games", said Wingefors.
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