Square Enix to sell 'Tomb Raider' to Sweden's Embracer

SQUARE ENIX HOLDINGS

02/05/2022 09:36

By Sam Nussey
    TOKYO, May 2 (Reuters) - Japanese gaming firm Square Enix
 9684.T  will cut back its developer presence in the West with
the sale of the studios behind 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
dealmaking in the video games industry. It includes studios
Crystal Dynamics, Eidos-Montreal and Square Enix Montreal,
affects 1,100 employees and is expected to close in the
July-September quarter. 
    Square Enix, whose major franchises include "Final Fantasy"
and "Dragon Quest", said the proceeds will be used to invest in
areas such as blockchain, artificial intelligence and the cloud.
    The Tokyo-based firm last year said it was reviewing its
portfolio as it looked to adapt to industry shifts such as the
focus on the "metaverse". 
    Embracer, which has gained a reputation for acquisitions and
currently has 10 billion Swedish krona ($1.02 billion) in dry
powder, said the deal will give it a pipeline of more than 230
games including 30 big budget AAA titles. 
    "Embracer is the best kept secret in gaming: a massive,
decentralized collection of entrepreneurs whom we are thrilled
to become a part of today," Square Enix America and Europe CEO
Phil Rogers said in a statement. 
    ($1 = 9.8474 Swedish crowns)

 (Reporting by Sam Nussey; Editing by Emelia Sithole-Matarise)
 ((sam.nussey@tr.com;))