In a recent conversation with Game File, Saber Interactive’s CEO, Matt Karch, provided insights into the unexpected collapse of the anticipated deal between Embracer Group and Saudi Arabia’s Savvy Gaming Group. Initially, discussions centered around securing funding for upcoming titles in the Turok Dinosaur Hunter and Jurassic Park franchises. However, as negotiations progressed, the scope of the deal expanded significantly, ultimately encompassing the entirety of Embracer Group.
Karch noted that what began as a modest financial arrangement quickly escalated, with Savvy facing a potential investment exceeding billion. “We knew there was a lot of interest in the Middle East, in particular, in funding,” Karch explained. “So, instead of taking Embracer’s cash, where it was becoming harder to do those raises [from investors], we would go out and we would raise capital.”
Complexities of the Deal
Reflecting on the situation, Karch expressed that the deal should have remained smaller and more manageable. “It should have been small, should have been broken up into multiple parts,” he remarked. “If it was smaller, I believe the approvals would have been streamlined. They were never able to get it approved.”
The culmination of these complications led to the deal falling apart at the last moment. Karch revealed that Embracer’s CEO, Lars Wingefors, had communicated to investors about a significant deal in the works, which resulted in heightened expectations and subsequent disappointment when the agreement failed to materialize. This fallout prompted cuts within Embracer, as the company grappled with the aftermath of the stalled negotiations.
<p“There was a handshake,” Karch recounted. “[Wingefors] was trying to protect the business, I think, and he really believed this was going to get done right. And when it didn't get done, he fell on the sword in such a hard way.”
Interestingly, neither Embracer nor Savvy has officially acknowledged the existence of the deal, leaving Karch’s revelations as the primary source of information regarding this high-stakes interaction.
