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With Microsoft buying out Activision and IGN buying out Gamer Network both resulting in layoffs I have to ask how do companies avoid acquisition?

Honestly, there are only two requirements to avoid an acquisition:

  1. The studio's controlling stakeholders/majority owners want the company to remain independent and do not want to cash out
  2. The company remains financially stable enough not to need a bailout

If the studio ownership decides they want to retire or cash out, they will be open to opportunities to sell. This is usually something of an inevitability - we are human and life priorities change over time. Things might be good for a few years, but a life-changing experience like having children, the death of a loved one, or other life-altering events could easily change circumstances.

The vast majority of the time, it's because the company is already in dire financial straits and needs a bailout. If the company can't afford to keep things running, they'll either look for a bailout (typically in the form of acquisition) or they'll be forced to shut down and lay everybody off. If the company can't earn enough to pay its debts, employees, and overhead costs, it won't be in business for long.

That's really it. All acquisitions happen when either the first or the second requirement (or both) is no longer being met. Either the owners decide they want to sell or the company is in desperate need of money and must either sell or close. Many companies don't even get to secure a buyout, they often die because they can't find a buyer (or other new source of funding) and run out of money.

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KOTOR remake developer Saber Interactive to leave Embracer Group

embracer group logo 2023

Bloomberg is reporting that Saber Interactive, the developers reportedly working on a remake of Star Wars: Knights of the Old Republic, is being sold by Embracer Group to a private investment group.

Embracer Group has been going through a massive restructuring that has seen hundreds of employees laid off and the shuttering of studios. This latest deal appears to be another part of that ongoing effort.

While the state of the Knights of the Old Republic remake is currently in question, Saber Interactive is slated to release a few games this year, including Warhammer 40000: Space Marine 2, Toxic Commando, and Expeditions: A Mudrunner Game. It’s currently not known how the sale will affect their current projects, which also include Jurassic Park: Survival

According to Bloomberg’s source, the deal is worth $500 million. Saber was part of Embracer’s big buying spree. They purchased the company back in 2020 at a reported price of $525 million, which means a bit of a loss. Furthermore, Bloomberg is reporting that the price also “includes an option for Saber to bring along multiple Embracer subsidiaries.” While this might just be referring to Saber’s branches in other countries, there are other studios listed under them, such as 3DRealms and Tripwire.

It’s possible that more of these sales will happen as Embracer continues its efforts to restructure. During their previous fiscal reports, the corporation has stated that they are in “the final stretch” of their restructuring, but it’s currently unknown what else is planned.

The post KOTOR remake developer Saber Interactive to leave Embracer Group appeared first on Destructoid.

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