Embracer rises after Q2 results, unit sale

Embracer AB

14/11/2024 08:27

** Shares in Swedish gaming group Embracer rise 4% after the
company posted Q2 results, announced divestment of its
subsidiary Easybrain for a consideration of $1.2 billion
    ** J.P. Morgan analysts see the disposal valuation as fair, 
giving Embracer a clearer financial path by likely eliminating
any remaining leverage concerns
    ** Redeye also notes the divestment of Easybrain as an
attractive deal, reducing net debt significantly and
strengthening the company's balance sheet
    ** Embracer has sold studios to reduce debt and plans to
split into three public entities by 2025, reshaping its gaming
industry future
    ** "This (divestment) will allow the split-up companies to
have stronger position for growth, including Asmodee (one of the
new entities), which was previously expected to be separated
with a high debt level," Redeye says

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))