Report: Savvy Games Group backed out of $2bn deal with Embracer
Details as to why the gaming firm ended the potential partnership remain unknown
Savvy Games Group has been revealed as the strategic partner that backed out of the $2 billion deal with Embracer Group.
As reported by Axios, sources familiar with the matter revealed the involvement of the Saudi Arabia government-backed gaming firm. They did not have details as to why the deal collapsed.
While the $2 billion partnership fell through, the two companies are still linked to each other. Last year, Savvy Gaming Group bought a $1 billion stake in Embracer, taking about 8% of the firm's shares.
Back in May, the CEO of Embracer Lars Wingefors, said that the abrupt end of the $2 billion deal was due to "external factors."
The following month, the publisher announced a cost-cutting restructuring program, including closing studios such as Campfire Cabal last week.