World War Z Dev Saber Interactive Splits from Embracer Group, Bringing 38 Games with Them

Saber Interactive, known for the World War Z game as well as co-developing Crysis Remastered, will be splitting from gaming giant Embracer Group.

In an announcement from Embracer Group, the company has agreed to sell Saber Interactive to Beacon Interactive, a company set up and controlled by Saber Interactive co-founder Matthew Karch, at a value of USD $247 million.

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As part of this divestment, Embracer Group will cease all operations in Russia. Furthermore, the divested assets include 38 ongoing game projects currently in development, while over 3,000 staff members are moving across Beacon Interactive.

Moreover, as part of the deal, Embracer Group will still retain some of Saber Interactive’s subsidiary studios.

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The subsidiary studios that are now part of Beacon Interactive include:

All Saber-Interactive Branded Studios
DIGIC Pictures (3D Animation Studio)
Fractured Byte (Support Studio)
Mad Head Games (Scars Above, Adam Wolfe)
New World Interactive (The Insurgency Series, Day of Infamy)
Nimble Giant Entertainment (Star Trek: Infinite, Hellbound)
Sandbox Strategies (Video Games PR and Influencer Agency)
Slipgate Ironworks (Kingpin Reloaded, Graven)
3D Realms (Ion Fury, Bombshell)

Meanwhile, Embracer Group will retain the following studios:

34 Big Things (The Redout Series)
4A Games (The Metro Series)
Aspyr (Tomb Raider I–III Remastered, Star Wars: Battlefront Classic Collection)
Beamdog (Mythforce, Axis & Allies 1942 Online )
Demiurge Studios (Marvel Puzzle Quest, Sega Heroes)
Shiver (Support Studio)
Snapshot Games (Phoenix Point, Chaos Reborn)
Tripwire Interactive (The Killing Floor Series)
Tuxedo Labs (Teardown)
Zen Studios (Pinball FX, Zen Pinball)

While Saber Interactive has split from Embracer Group, the latter will still retain future publishing rights to 14 Saber Interactive games currently already in development, including two joint projects with Beacon Interactive.

The next AAA game from Metro studio 4A Games
An unannounced concept phase AAA game
A previously announced AAA game based on a major license
A new AAA multiplayer shooter based on a controlled IP
A new AA game based on an Asmodee IP
A new AA game from 34 Big Things based on an owned IP
Killing Floor 3
Teardown (ongoing development)
The full upcoming pipeline and back catalog from Zen Studios, Aspyr, and Tripwire

Additionally, Beacon Interactive was also granted an option right to acquire both 4A Games and Zen Studios for a fixed price within a certain time period, which the company is also buying according Bloomberg reporter Jason Schreier.

Lars Wingefors, co-founder and Group CEO of Embracer, said:

I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us. This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt. The transaction yields additional headroom to amortize debt in accordance with existing bank agreements and will improve financial flexibility. This is the first transaction of the previously mentioned structured processes and marks a small but important step in our journey to transform Embracer into the future for the benefit of all employees, gamers, and shareholders.

Matthew Karch, co-founder of Saber Interactive and director of Beacon Interactive, has this to say about the deal:

Over the past four years, I have been proud to be part of Embracer’s amazing transformation into one of the leading game companies in the world. As part of the company’s efforts to reorganize for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. This divestment leaves both parties in much better positions to grow our respective businesses. I will continue to remain a large, long-term shareholder of Embracer and we will remain partners on several ongoing and future projects. This transaction also safeguards the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades.

Last month, Embracer Group confirmed that they had let go of 1,387 staff since its restructuring began last year in June, but warned that more layoffs are to come.

In the same announcement, Wingefors said that Embracer was in the process of selling off parts of its business, with Borderlands developer Gearbox up for sale.

The publisher had an aggressive acquisition spree back in 2022, acquiring many notable studios including Eidos-Montréal, the studio behind the Deus Ex franchise, Thief series, and Marvel’s Guardians of the Galaxy, as well as Tomb Raider studio Crystal Dynamics.

Since its restructuring effort which began in 2023, many studios under its umbrella have seen layoffs, game cancellations, and doors shutting down.

This includes the shutdown of Saints Row developer Volition, Campfire Cabal, and TimeSplitter studio Free Radical Design.