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Embracer Group and Carlyle Group to Sell Game Studios

by on September 12, 2023

Two popular studios, Gearbox Entertainment and Jagex are being sent to the auction as owners seek buyers for the troubled entities. Embracer Group and the Carlyle Group are ardently scouting for buyers.

Embracer Group, whose parent company Gearbox Entertainment is now owned by Embracer, has already put thousands of workers out of work and closed dozens of companies, most recently Volition after three decades of operation.

Reports indicate that the Group is wrestling with weak financial growth and a staggering forecast. Despite efforts to roll back expenditures, the company was obligated to close several companies.

Next up is Jagex, creator of the popular video game RuneScape. According to Reuters, The Carlyle Group is considering a sale of the company and is planning an auction sometime late this year. If the sale goes through, Jagex could be valued at £1 billion.

According to the company details on its website, The Carlyle Group bought Jagex in early 2021 for an estimated $530 million. This suggests that there’s a lot of potential profit. Official estimates suggest Jagex earns about £60 million annually, and that number is expected to increase.

This brings the question as to whether a capital injection could keep the company afloat while Jagex picks up steam. The company itself seems solvent, however, compared to other studios, is flagging behind.

After being acquired back in 2021 for $1.3 billion, Gearbox Entertainment is also expected to be let go as part of the company restructuring that is expected to continue through the year.

According to the report, a deal isn’t guaranteed, and a variety of factors may determine the outcome. Should they proceed with the sale, the company could be worth $1.25 billion, or about £1 billion.

The sale might impact some studios and properties that were acquired by Embracer Group and brought under Gearbox Entertainment and Publishing. These include Cryptic Studios and games like Neverwinter and Star Trek Online.


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