Savvy Games Group CEO Brian Ward has welcomed plans by European publisher Embracer Group to break itself up into three separate publicly traded companies.
The company is set to split into tabletop specialist Asmodee, mid-tier publisher Coffee Stain & Friends and triple-A firm Middle-Earth Enterprises & Friends. It follows more than 1,000 layoffs at the company and the sale of assets such as Saber Interactive and Gearbox.
Savvy Games Group is a major investor in Embracer Group, having previously pumped $1 billion into the company to purchase an 8.1% share. It currently represents 7.46% of Embracer’s capital and has 5.15% voting rights.
Ward said the new plan offers significant benefits for shareholders, iterating his support for company executives.
“We welcome the company’s announcement today regarding a proposed transformation into three separate entities, and believe that the proposal offers significant operational and shareholder benefits,” said Ward.
“We remain fully supportive of management and are confident that the board and executive team are working in the best interests of the company’s operative groups, businesses, employees, and shareholders.”
Tipping point
It was the collapse of a $2 billion investment deal in Embracer Group, reportedly from Savvy Games Group, that sparked the crisis the company currently finds itself in.
The company currently has a $1.5 billion debt hole following years of aggressive M&A activity designed to establish itself as one of the world’s major games publishers and one of Europe’s largest games firms.
As part of plans to split the company apart, Embracer, through Asmodee, has entered into a financing agreement worth 10.5 billion kr ($962 million) to help repay those debts. The loan is secured by Asmodee assets.
Shares in Embracer Group rose as high as 18% on the news of the split.
