Square Enix sells ‘Tomb Raider’ to Sweden’s Embracer
TOKYO, May 2 (Reuters) – The Japanese gaming company Square Enix (9684.T) will reduce its developer presence in the West through the sale of the studios behind the franchises “Tomb Raider”, “Deux Ex” and “Thief” to Sweden’s Embracer Group (EMBRACb.ST) for $ 300 million.
The sale announced on Monday is the latest in a wave of business in the video game industry. It includes the studios Crystal Dynamics, Eidos-Montreal and Square Enix Montreal, affects 1,100 employees and is expected to close during the July-September quarter.
Square Enix, whose major franchise deals include “Final Fantasy” and “Dragon Quest,” said the proceeds will be used to invest in areas such as blockchain, artificial intelligence and the cloud.
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The Tokyo-based company said last year that it was reviewing its portfolio as it looked to adapt to industry shifts as a focus on the “meta verse”.
Embracer, which has gained a reputation for acquisitions and currently has SEK 10 billion ($ 1.02 billion) in dry powder, said the deal will give it a pipeline of more than 230 games including 30 major AAA titles.
“Embracer is the best-kept secret in gaming: a massive, decentralized collection of entrepreneurs that we are excited to be a part of today,” said Square Enix America and Europe CEO Phil Rogers in a statement.
($ 1 = 9.8474 Swedish kronor)
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Reporting by Sam Nussey; Editing Emelia Sithole-Matarise
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