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https://www.gamesindustry.biz/articles/2021-12-15-embracer-purchases-asmodee-for-275bn

Today Embracer Group announced that it has purchased French board game publisher Asmodee.

The purchase would be for €2.75 billion ($3.1 billion), €350 million ($394 million) of which will be paid in newly issued Embracer shares.

Asmodee will continue to operate as it has before the acquisition with no organizational changes.

"Asmodee would become our ninth operating group, moving Embracer towards becoming a leading independent global gaming eco-system with several market leading positions," said Embracer founder and CEO Lars Wingefors.

"The Embracer strategy to build on passionate entrepreneurs and creators with a decentralized operating model continues to prove successful."

In November, Wingefors noted that Embracer had made 37 acquisitions in the previous year, and was expecting "a similar amount" in the year ahead.

Congratulations to the senior leadership team at Asmodee who possibly have never played a board game in their lives but will doubtless be very well remunerated for their roles in this sale.

the bigger question is how much of the purchase price was borrowed cash that's going to cripple Asmodeee with debt ?

although the fact they've accepted some of the money in Embracer shares is mildly encouraging suggesting the old owners don't think it's going to all go horribly wrong right away

Embracer is a Videogame Company (THQ Nordic) that also just bought Gearbox and not a Hege Fund. As they acquired more companies they did the google thing and just created a parent company that owned all the other companies. IMO this is probably one of the better outcomes for Asmodee from a gamer point of view.

 Monkeysloth wrote:
Embracer is a Videogame Company (THQ Nordic) that also just bought Gearbox and not a Hege Fund. As they acquired more companies they did the google thing and just created a parent company that owned all the other companies. IMO this is probably one of the better outcomes for Asmodee from a gamer point of view.

Huh. That is good to know, as a mainly SW: Legion player now, this seemed like something to potentially cause a bit of worry after the moving of Star Wars minis games from FFG to AMG, gutting of the original Legion/X-Wing crew, and placing Armada on life support.

I wouldn't be surprised to see them offload some studios or games over the next few years but from what I understand they just kind of let the companies they buy do their own thing.

An example is they got the rights to the old game Kingdom of Amalur (From Kurt Schillings failed company) which was a modest hit like 10 years ago and they've just released a new expansion for it as the re-release they did after the acquisition did decent. It's rare to see a game that old get new content.

From Boardgame Geek: Has financial breakdown of the deal and other details.

https://www.boardgamegeek.com/blogpost/125985/asmodee-sell-275-billion-swedens-embracer-group

 Monkeysloth wrote:
Embracer is a Videogame Company (THQ Nordic) that also just bought Gearbox and not a Hege Fund. As they acquired more companies they did the google thing and just created a parent company that owned all the other companies. IMO this is probably one of the better outcomes for Asmodee from a gamer point of view.

Gearbox got bought? Weren't they a money factory for 2K?

 Flipsiders wrote:
Gearbox got bought? Weren't they a money factory for 2K?

I assume Borderlands 3 was not the money factory they hoped it would be.

Now that Embracer owns Asmodee, I wonder if they can somehow convince Epic to give them lunch money for selling X-wing miniatures NFTs exclusively through EGS. Seems like something they'd do.

Well then, I hope that's a good outcome then. I'd like to see Legion last for a long time.

Hoping Armada gets the love and support it needs to make a comeback after this.

Interesting move, I wonder if this could eventually have any implications with Games Workshop licences games developed by them as a potential direct competitor.

I don’t think it’ll have much implications, and of course not as simple a connection as the FFG licence and rumoured reasons for GW terminating that contract, but notably Space Marine 2 is now being developed by a sister company to Asmodee.

Gobble gobble.

I guess we can expect to see price increases to pay for this purchase.

Ac4155 wrote:
Interesting move, I wonder if this could eventually have any implications with Games Workshop licences games developed by them as a potential direct competitor.

I don’t think it’ll have much implications, and of course not as simple a connection as the FFG licence and rumoured reasons for GW terminating that contract, but notably Space Marine 2 is now being developed by a sister company to Asmodee.

Well, one implication is that now Embrace has many more IPs to make videogames.

Yeah, I would guess that Embracer will push to release digital versions of many of the Asmodee owned boardgames and brands. Curious to see if they try to swing for something like Marvel and Star Wars licensed video games using the existing relationship with Asmodee to get a foot in the door. Personally I'm more interested in seeing what might happen with the unique IPs that were developed in-house, among them:

-Twilight Imperium
-Legend of the Five Rings
-Ashes (Rise of the Phoenixborne)

we'll also throw Stuffed Fables in there too lol. There are some others, but these are the ones that jump out as being worthy of video games and other media.

 Flipsiders wrote:

 Monkeysloth wrote:
Embracer is a Videogame Company (THQ Nordic) that also just bought Gearbox and not a Hege Fund. As they acquired more companies they did the google thing and just created a parent company that owned all the other companies. IMO this is probably one of the better outcomes for Asmodee from a gamer point of view.

Gearbox got bought? Weren't they a money factory for 2K?

They were never owned by 2K. Plus everything they made that wasn't Boarderlands never did amazing. Homeworld is the only other IP they have that anyone really cares about. That being said they were bought for 1.3 Billion USD so Boarderlands (and a lesser extent Homeworld) is still worth quite a lot.

The embracer group have really been flashing the cash recently. They bought 32 studios last year. It makes you wonder where all the money comes from.

Chikout wrote:
The embracer group have really been flashing the cash recently. They bought 32 studios last year. It makes you wonder where all the money comes from.

EUR 350 million would be paid to the main shareholder, PAI, and certain other minority shareholders in newly issued Embracer B shares (the “Closing Consideration Shares”) and approximately EUR 2.4 billion in cash and debt refinancing.

The acquisition would be financed by cash at hand, available credit facilities and new credit facilities from Nordea Bank, SEB and Swedbank. The new unsecured credit facility would consist of a SEK 6 billion term loan with expiry in 30 months, as well as SEK 12 billion in bridge loans.

Dunno if that really means anything. Gaming queue's so long that by the time I play a game, it's usually discontinued...

https://embracer.com/release/embracer-group-intends-to-make-a-strategic-acquisition-of-leading-board-gaming-group-asmodee-that-would-form-the-ninth-operating-group/

There goes the neighborhood...

When things get to that level of business, we are playing by a unique set of rules.

Reality doesn't apply at that level and it has nothing to do with dollars, products, or things like that.

 ced1106 wrote:

Chikout wrote:
The embracer group have really been flashing the cash recently. They bought 32 studios last year. It makes you wonder where all the money comes from.

EUR 350 million would be paid to the main shareholder, PAI, and certain other minority shareholders in newly issued Embracer B shares (the “Closing Consideration Shares”) and approximately EUR 2.4 billion in cash and debt refinancing.

The acquisition would be financed by cash at hand, available credit facilities and new credit facilities from Nordea Bank, SEB and Swedbank. The new unsecured credit facility would consist of a SEK 6 billion term loan with expiry in 30 months, as well as SEK 12 billion in bridge loans.

Dunno if that really means anything. Gaming queue's so long that by the time I play a game, it's usually discontinued...

https://embracer.com/release/embracer-group-intends-to-make-a-strategic-acquisition-of-leading-board-gaming-group-asmodee-that-would-form-the-ninth-operating-group/

.
Basically Embracer owe banks a lot of money, but that's okay as long as they service the debt. Banks will be very happy even if they somehow folded.


Automatically Appended Next Post:

 Easy E wrote:
When things get to that level of business, we are playing by a unique set of rules.

Reality doesn't apply at that level and it has nothing to do with dollars, products, or things like that.

Embracer defaults?? meh! theres always billions around to throw at the next investment.

Meanwhile, BGG has been flinging the primal poo about Asmodee acquiring MM. Despite BGG Hot Deals (and r/boardgames and Dakka's) regular pooping on MM's sales (and listing Amazon sales, as Amazon is one of Asmodee's largest retailers).

I guess MM's relationship with Asmodee explains their access to CMON KS exclusives and excess inventory? Dunno.

https://www.boardgamegeek.com/blogpost/126073/online-us-retailer-miniature-market-purchased-asmo

That's pretty interesting news.

BGG really just seems to be the "old man yells at cloud" meme now days when it comes to anything. There's so much competition online now days that Asmodee buying one of the larger stores won't really make a difference outside of maybe improving Asmodee's distribution in the US since MM does do some of that. I do wonder if that was part of the reason they bought them as if they wanted Asmodee branded retail it would be simpler to just start from scratch. MM gets a lot out of this from the sounds of it.

Honestly, I haven't boughten much from MM for the past 3 years as their sales have been fairly underwhelming for a long time and they rarely have the things I want in stock that I am willing to pay full price for.

Wait so Miniatures Market got bought by Asmodee, and Asmodee just got bought by THQ Nordic? Wtf is going on? Lol

MM was bought by Asmodee many months ago, before Asmodee was put up for sale.

The MM purchase is a pretty huge deal, it gives Asmodee access to a lot of data about competitors products and marketplace performance (data which they can then use to identify potential acquisitions, as well as industry trends for the purposes of new product development). Im willing to be that Asmodee will be franchising/expanding the MM model to establish a network of retail stores that would also double as evommerce distribution centers.

chaos0xomega wrote:
MM was bought by Asmodee many months ago, before Asmodee was put up for sale.

The MM purchase is a pretty huge deal, it gives Asmodee access to a lot of data about competitors products and marketplace performance (data which they can then use to identify potential acquisitions, as well as industry trends for the purposes of new product development). Im willing to be that Asmodee will be franchising/expanding the MM model to establish a network of retail stores that would also double as evommerce distribution centers.

As someone who lives in their home town, their stores definitely do not double as distribution centers. The warehouse is on the other side of the city from their retail locations, and last I was there only had a very limited selection of dings and dents on their showroom floor.

 Laughing Man wrote:

chaos0xomega wrote:
MM was bought by Asmodee many months ago, before Asmodee was put up for sale.

The MM purchase is a pretty huge deal, it gives Asmodee access to a lot of data about competitors products and marketplace performance (data which they can then use to identify potential acquisitions, as well as industry trends for the purposes of new product development). Im willing to be that Asmodee will be franchising/expanding the MM model to establish a network of retail stores that would also double as evommerce distribution centers.

As someone who lives in their home town, their stores definitely do not double as distribution centers. The warehouse is on the other side of the city from their retail locations, and last I was there only had a very limited selection of dings and dents on their showroom floor.

Never said they did, only that I think Asmodee will move things in that direction over time, somewhat similar to how Amazon operates, but with a harder retail presence as opposed to just a network of warehouses.

They just bought Dark Horse comics too. They really are on a spending spree.

Chikout wrote:
They just bought Dark Horse comics too. They really are on a spending spree.

Embracer using comparatively small change to buy more media producing companies is a good hedge for them in enticing more cash their way.

One way is they could spin out a media division off the back of recent acquisitions and run it all the while being an attractive purchase for other investors.

Money making money.

 Monkeysloth wrote:
Embracer is a Videogame Company (THQ Nordic) that also just bought Gearbox and not a Hege Fund. As they acquired more companies they did the google thing and just created a parent company that owned all the other companies. IMO this is probably one of the better outcomes for Asmodee from a gamer point of view.

As someone in this field, i agree with your summation. This sale is not without room for criticism, but this is a better place than what asmodee has enjoyed in quite sometime. Also as someone who has been closely tied to the french business when it was still an innovative boaregame publisher and not an all consuming blob, its going to take quite a while for asmodee to recover from the mismanagement it has seen in the past several years.

Embracer needs to make sure it steers as clear from Christian Peterson as possible. But now that CP has bought out the FFG "Game Shop", he is attempting to climb back in the industry after he has cashed out from his sale of FFG to asmodee. FFG suffered greatly under his continued leadership when asmodee made him an operation manager for the north american portion. Indeed, acquiring FFG was the worst thing asmodee could have done for gaming.

Many livelihoods were affected by CPs mismanagement, and his bowing to the hedgefunds parasitic desire to run the ship on a veritable skeleton crew while paying out quite a sum to ghost consultants.

Indeed, its going to be a long road to recovery for asmodee, and it can only happen under the leadership of those who are trying to make games while making a profit, instead of bilking the population only for a profit.