LogInThis might have set back the $38 billion investment plan.
Image credit: Alexandru Tabusca
In May, Embracer Group announced that its $2 billion deal with a mysterious partner had sadly collapsed. This was quite sudden and forced the company to adjust its development plans. Back then, Embracer didn't reveal the name of the partner, but now, reports say it was Savvy Games – a Saudi Arabian government-backed company.
According to Axios's sources, Savvy and Embracer failed to collaborate, but the reason is still unknown. Savvy Games is very interested in the game industry as it is planning to invest $38 billion in it and become the hub for video games.
Saudi Arabia has already spent nearly $8 billion on stakes in gaming companies around the world in the past 18 months, and this contract would be a great addition to the plan.
Both Embracer and Savvy are prominent players in the industry, with plenty of companies acquired by them in the years. Embracer Group has 138 internal game development studios, while Savvy has acquired the mobile game developer Scopely as well as two esports firms and is actively looking for artists.
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