Embracer Group has announced the sale of Remnant and Hyper Light Breaker publisher Arc Games and Star Trek Online developer Cryptic Studios in a deal that will net the company $30 million.
Announced in press release Today, Embracer confirms that it is selling the companies it acquired back in December 2021 to Project Golden Arc Inc., which it says is “owned and operated by members of Arc Games' management team.” The sale is also being financed by developer and publisher XD Inc.
However, publishing rights for the Remnant series will be transferred from Arc Games to THQ Nordic, also a subsidiary of Embracer Group (and the owner of Remnant's intellectual property rights). Additionally, the multiplayer dungeon crawler Fellowship (currently published by Arc Games) will be part of the project. Coffee Stain, which is expected to “be spun off from Embracer.” and is listed on the Nasdaq First North Premier Growth Market in Stockholm.” Going forward, Arc will be listed as a co-publisher.
Embracer CEO Phil Rogers states that “the transaction supports our key priorities by enhancing our focus on Embracer's strategic assets and core IPs while improving profitability and free cash flow,” thanking Arc Games and Cryptic Studios employees for their work since 2021. “We are confident that they will prosper and develop in the years to come,” he adds.
Embracer Group has acquired a huge number of video game companies in recent years, but at the moment it is perhaps most notorious for the mass layoffs and studio closures that followed a controversial restructuring program.
the company canceled 29 unannounced games between July and December 2023. along with the closure of seven studios and layoffs affected at least 1,400 people. Former CEO Lars Wingefors later said, “I'm sure I deserve a lot of criticism,” despite doubling down on his stance, saying, “I need to believe in the mission we set out and it's still valid, and now we're making it possible by doing it.” [new] structure”.
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