Standard & Poor Removes Embracer from the Top Stocks List

Embracer Group is a worldwide conglomerate consisting of creative and entrepreneurial entities involved in PC/console, mobile, board games, and other related media. With a vast catalog encompassing over 900 owned or controlled franchises, the group holds an extensive portfolio.

It's clear from the latest news that the company has faced another setback as it has been removed from several S&P lists, such as the Europe 350 and Global 1200. Standard & Poor, an American financial services company renowned for providing analyses and insights into the global financial market, regularly publishes these lists. Traders often rely on these lists to make informed decisions about buying or selling stocks, considering them as indicators of a stock's attractiveness in the market. As Embracer got removed from the lists, it's expected that consequently, the company will experience reduced market activity and value, which adds additional pressure on the company.

Earlier this year, Embracer unveiled its financial reports, which on their own might not have been seen as overly concerning. This was because they coincided with sales figures achieved by developers under Embracer's umbrella, notably including Deep Silver. However, the company's fortunes took a turn for the worse when a planned $2 billion deal collapsed just before the financial reports were published. This sudden setback created a cloud of uncertainty around Embracer's future. Adding to their challenges, the company also had to navigate planned layoffs across multiple subsidiaries, further compounding their already difficult position and putting Embracer on the defensive.

Here's some more news about the recent layoffs. Telltale Games, a studio widely recognized for its narrative adventure games like The Expanse, which was recently launched, and the highly anticipated upcoming title The Wolf Among Us 2, has recently undergone a significant downsizing, resulting in a substantial reduction in its workforce. The same situation happened with ex-employees at BioWare when the company decided to "match the studio's needs" and fire around 50 workers. Well, it seems that they didn't expect that some people would fight back.

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