Embracer Group (Ex THQ Nordic) Has Talked to 50+ Companies About M&A; Quality Comes First
Embracer Group, formerly known as THQ Nordic, has posted its financial report for Q2 2019 today. The gaming area of the company had its net sales increase by 117%, though overall that was offset by the 51% decrease in the film business area compared
CEO Lars Wingefors revealed during the subsequent investors call that he and his team working on M&A (mergers and acquisitions) have been talking to over fifty companies during the last quarter. In fact, a few of those are 'sizable businesses' that if acquired could form a new operating group, separate from the existing ones (THQ Nordic, Koch Media, and Coffee Stain).
Even so, Wingefors stressed that Embracer Group as a whole doesn't need to have M&A to grow the business and investors should therefore not expect to rush into doing any mergers and acquisitions. It will have to be all about finding the right companies with the right culture, the right products and ambition.
The focus isn't as much on M&A anymore, then. Perhaps that's not surprising, given how much the company focused on acquiring IPs and studios over the last few years. Just this August, five studios were purchased by Embracer Group: Milestone, Gunfire Games, Goodbye Kansas Game Invest, Game Outlet Europe and KSM.
There are already 86 titles in development across the various groups and developers, of which 49 still have to be announced. Additionally, Wingefors underlined switching to a 'quality first' mentality across Embracer Group, with the goal to deliver better games, making happier customers and also delivering higher ROI (return on investment) for investors.
For the next fiscal year ending in March 2021, there will be at least two AAA titles in the schedule, as well as a number of AA releases ranging from Desperados 3 to Destroy All Humans, from Wasteland 3 to Iron Harvest, and even Biomutant which is said to be in the 'final stages of polishing'.
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