Embracer $2 billion development deal cancelled after 7 months of negotiation

[the-pi-guy]

Embracer was being offered $2 billion dollars for development over 6 years.

Some more insight on Embracer Group $EMBRAC's cancelled deal:

- verbal commitment in Oct 2022
- more than $2 billion in contracted development over 6 years
- would have included a catch-up payment that would've impacted profits
- management received the bad news late last night pic.twitter.com/ZwBjn0hOHV

— EmbracerInvestor (@EmbracerInvest) May 24, 2023

[kitler53]

I'm sorry,.. what's the story here?  who was the contract with?

[BananaKing]

Ya I'm confused as well

[the-pi-guy]

I'm sorry,.. what's the story here?  who was the contract with?

There's not really a crazy impactful story.

Just thought it was interesting that apparently someone was working with Embracer and wanted to have some $2 billion worth of development done over 6 years.

[kitler53]

There's not really a crazy impactful story.

Just thought it was interesting that apparently someone was working with Embracer and wanted to have some $2 billion worth of development done over 6 years.

yeah, just found the era thread.  

so the other party isn't known.  only so many could float at $2 billion price tag.  my thoughts are:
- MS
- Amazon
- Disney

[BananaKing]

yeah, just found the era thread.  

so the other party isn't known.  only so many could float at $2 billion price tag.  my thoughts are:
- MS
- Amazon
- Disney

Could be anyone really.

It sounds like it could be EA. I could see them wanting help on their new initiatives. Battlefield, mass effect, dragon age are all IPs that probably need a massive amount of support  

Could he take two, Activision, Microsoft or even square.

[kitler53]

Could be anyone really.

It sounds like it could be EA. I could see them wanting help on their new initiatives. Battlefield, mass effect, dragon age are all IPs that probably need a massive amount of support  

Could he take two, Activision, Microsoft or even square.

I mean maybe but my thoughts are
- 6 years is 1 game cycle
- $2 billion is like 4 AAA games or like 8-12 titles as a support studio.  

if it is fully developed by embracer I can only see Amazon/Disney looking for that.  both have been cost cutting lately too

if it is support then only MS has enough going on to need that much help.  I suppose Sony too but I think $2 billion is too high of a commitment for it to be them plus they are increasing investment not pulling back. 

[the-pi-guy]

Investor question: Could you please clarify the current status of the Star Wars Knights of the Old Republic remake in regards to its development status and what shape is it in.

Embracer CEO Wingefors: Favorite question. [pauses as questioner chuckles] I have no further comments.

— Stephen Totilo (@stephentotilo) May 24, 2023

Kotor remake is probably dead....

[Legend]

odd that the other party said no. Sounds like an easy payday without risks.

Investor question: Could you please clarify the current status of the Star Wars Knights of the Old Republic remake in regards to its development status and what shape is it in.

Embracer CEO Wingefors: Favorite question. [pauses as questioner chuckles] I have no further comments.

— Stephen Totilo (@stephentotilo) May 24, 2023

Kotor remake is probably dead....

Is this the first remake to have development issues? FF7 took forever to be announced but it released just fine.

[the-pi-guy]

odd that the other party said no. Sounds like an easy payday without risks.

Sorry, the OP is a bit bare on details.
Embracer was being contracted for development, not the other way around.

Embracer cut their income forecasts by billions, largely because of this falling through.

[SWORDF1SH]

If I had a spare $2B, I'd give it to Mike to hurry up with Hapax. Still not used to calling it Hapax btw  

[Legend]

If I had a spare $2B, I'd give it to Mike to hurry up with Hapax. Still not used to calling it Hapax btw  

Feel free to call it VizionEck: Adventure: Hapax.

[SWORDF1SH]

Feel free to call it VizionEck: Adventure: Hapax.

Didn't we (me) call it VizionEck: The Phantom Game for a while (once).  We all laughed (just me)

[darkknightkryta]

Didn't we (me) call it VizionEck: The Phantom Game for a while (once).  We all laughed (just me)

I laughed (I don't remember this conversation)