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Square Enix Sells Eidos Brand And Properties To Embracer Group In US$300m Deal

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Shaymin:
It seems like that's a low price at 0.04 Bethesda.http://www.nintendoworldreport.com/news/60350/square-enix-sells-eidos-brand-and-properties-to-embracer-group-in-us300m-dealAfter nearly a decade and a half, Square Enix is selling their largest Western subsidiary.The Embracer Group (parent company of THQ Nordic, Saber Interactive, Gearbox, and Aspyr Multimedia) have entered into an agreement to purchase the previous assets of Eidos - including the development studio Crystal Dynamics - for US$300m. In the deal, Embracer will become the owners of properties such as Tomb Raider, Thief, and Deus Ex.Square Enix acquired Eidos initially in 2009 in a deal valued at £84.3m (or roughly US$130m at the time) in an effort to shore up their Western development. In recent years, the company has seen explosive growth in their domestic production including the stunning comeback of the MMORPG Final Fantasy XIV, while their Western divisions have failed to live up to often-outsized expectations. SE claims that the money from the sale - which will be paid in cash when the deal closes - will be used to invest in new technologies.Following the sale, Square Enix will retain ownership of Life is Strange and Just Cause, as well as the 2021 release Outriders.

Luigi Dude:
Did Square Enix just take the first offer that was given because $300 million is extremely low for the IP's involved in this sale.  Yeah they bought it for $130 million back in 2009, but with all the high profile studio buyouts since then, the value of gaming studio's, especially with legacy IP's has grown quite a bit since then.

Adrock:
Square Enix might have wanted to simply cut bait. It didn’t manage its Western teams/releases particularly well with absurd projections and GaaS nonsense. Square Enix very well could have held out for a sweeter deal. Personally, it’s at least mildly admirable that it was moved on as swiftly as it did.

broodwars:
Well, I won't miss Square Enix using their Western studios as scapegoats every time one of their shitty Japanese managers made a godawful corporate mandate. Still, the decision to sell these studios AND their IP for practically nothing, relatively speaking, is very odd. It makes me wonder if Square Enix is in acquisition taljs of their own, and the prospective new owners find the Western studios redundant. Downsizing the company a bit before the sale makes them much more affordable, and it cuts out the bad press of having to close the devs later.

Or Square Enix's leadership is just insane and they really are looking for that quick digital hookers & crack money that are blockchains & Cloud AI, as they've said. That fits, too.  :rolleyes:

Khushrenada:
Block chain? More like the Bankruptcy chain, m i rite?! :smug:

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