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Gearbox (Embracer Group) acquires Perfect World Entertainment for $125 million

DarkDetective

Staff
真実はいつもひとつ! There's only one truth
Embracer Group just announced that it has announced Perfect World Entertainment through its subsidiary Gearbox Entertainment Company for $125 million.

Embracer Group AB (“Embracer”) has entered into an agreement to acquire 100 percent of the shares in [“Perfect World Entertainment”] from Perfect World Europe B.V. (“Perfect World”). PWE is a video game developer and publisher for PC and consoles, including PWE Publishing and Cryptic Studios. The acquisition adds on a total of 237 employees. The purchase price for the acquisition comprises a one-time payout of USD 125 million, divided into of USD 60 million in cash and USD 65 million in B shares of Embracer subject to consideration adjustment at closing. The purchase price net of cash amounts to USD 103 million.

Founded in 2000 and headquartered in Los Gatos, California, Cryptic Studios is one of the rare handful of studios with experience launching and operating multiple MMOs (Massively Multiplayer Online Games) at scale. The studio has a track record of success with three of the last four launches achieving meaningful commercial success. Neverwinter and Star Trek Online continue to be top performing MMOs with highly engaged user bases. Cryptic comprises a team of 136 employees.

Founded in 2008 and headquartered in Redwood City, California, PWE Publishing is known for publishing leading PC and console titles based on well-known global entertainment franchises such as the Star Trek and Dungeons & Dragons games by Cryptic Studios. PWE Publishing’s product portfolio also includes the popular Torchlight series, as well as Remnant: From the Ashes, in partnership with Embracer owned development studio Gunfire Games. PWE Publishing comprises at team of 101 employees.
During 2021, PWE had operating losses stemming from the cancellation of Cryptic’s newest MMO (Magic: Legends) and a gap in PWE Publishing’s release schedule. Embracer is highly confident that under its leadership, both Cryptic and PWE Publishing will be strong financial contributors in addition to their strategic value with new IP and an MMO capability that has been missing from Embracer’s portfolio.
PWE’s next launch is planned in 2022 with five additional releases by 2024. In calendar year 2021 the companies are estimated to generate net sales of approximately SEK 700 million.
Subject to closing adjustments, the USD 125 million purchase price comprises a one-time payout, divided into USD 60 million in cash and USD 65 million in B shares of Embracer. The purchase price net of cash amounts to USD 103 million.

You can read more at https://embracer.com/release/embrac...ement-to-acquire-perfect-world-entertainment/
 
Huh, never realized Star Trek Online and the Neverwinter MMOs were considered as having meaningful commercial success.
RecRoom the F2P game has an valuation of $3.5bn

Market is still madness.
Minecraft for $2.5bn was the steal of the century in the gaming space.
 
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RecRoom the F2P game has an valuation of $3.5bn

Market is still madness.
Minecraft for $2.5bn was the steal of the century in the gaming space.
Is it just me but F2P games seems to be way overvalued nowadays?
It's probably just me not knowing what I'm talking about. I Wonder where does Embracer find all this money tho cuz for all the studios they've acquired Borderlands 3 and Metro Exodus are their biggest games they released by far and those haven't really sets the charts on fire.
 
I just love these companies just casually spending billions of dollars from their bottomless wallet funded by the zero notable releases they have done. Seems perfectly legit
 
I just love these companies just casually spending billions of dollars from their bottomless wallet funded by the zero notable releases they have done. Seems perfectly legit

What is notable to you? Their subsidiaries release games all the time.
 
I am unironically shook. I didn't even think DH was struggling or looking to sell!
Dark Horse was owned for 80% by an Hong Kong-based investment firm. I guess it was time for them to move on. That was also the reason why board game conglomerate Asmodee was sold to Embracer last week.
 
Well, Dane is probably going to have a lot of ports ready for it from Embracer and it's subsidiaries. That Dark Horse acquisition is definitely a big one too. Makes me wonder if Embracer will see if Koei Tecmo is interested in making a Musou game based on one of their IPs.
 
They bought Asmodee too???? WTF why am I only finding this out now. Embracer is actually diversifying, huh? Where the hell are they getting all that investment money...
 
I cannot believe they bought Dark Horse. That alone is huge acquisition. Now I’m going to worry if they get too large.
 
They bought Asmodee too???? WTF why am I only finding this out now. Embracer is actually diversifying, huh? Where the hell are they getting all that investment money...
Earnings, share issues, and in case of the Asmodee acquisition, partially debt (though it's one of the few acquisitions that involves external financing outside share issues).
 
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