The Embracer Group acquires Perfect World Entertainment for $125 million

The studio acquired will be an Embracer Gearbox Software division

The acquisitions from Embracer Group marked another chapter when it announced the acquisition of five companies. One of the most significant in regards to the gaming industry is the agreement of Embracer Group with Perfect World Entertainment. It includes Perfect World Entertainment Publishing, which has published games such as Remnant: From the Ashes, and Cryptic Studios, the renowned MMO creator behind games like Star Trek Online, Champions Online, Neverwinter, and also the now-defunct City of Heroes and Magic: Legends.

Embracer Group acquires Perfect World Entertainment: A deal worth millions

Embracer will pay $60 million in cash, along with the equivalent of $65 million for Embracer stock shares. The studio acquired will be an Embracer Gearbox Software division. This is just one more acquisition on an extensive list that has resulted in Embracer ranking among the most active buyers in the field of games. The Perfect World acquisition has a market value of $5.9 billion and Embracer has a market value of $10 billion.

Embracer Group acquires Perfect World Entertainment
Embracer Group acquires Perfect World Entertainment

The press release that announced the acquisition referred to the different games that fall under the banner of Perfect World/Cryptic. It included, “In Q1 2021, PWE had operating losses because Cryptic’s newest MMO (Magic: Legends) was canceled and a gap in their schedule occurred.” This could explain the game’s abrupt shutdown as not making enough profit. Since Perfect World had to survive without it, the company decided to reduce losses before they spiraled out of control. It is anticipated that Embracer will continue to gain big money with such collaborations. 

“It has been an amazing experience being a member of Perfect World and we are grateful to them for their assistance over the years. PWE is thrilled to be an integral partner in the Embracer family, and join Gearbox in their mission. We’re eager to use our extensive knowledge and experience to help shareholders as well as users from all over the world.”

ceo, perfect world entertainment

Embracer is likely to have many good things to say about its latest acquisition, and it promises that everything will go smoothly from now on. The games Embracer Group acquires usually produce substantial profits, the same can be predicted for Perfect World Entertainment. It is expecting its live Cryptic Games to be steady and grow in the future. The publishing division is currently working on another game in the development for the year 2022 & anticipates releasing five additional titles by the year 2024.

More deals to come

Embracer Group acquires Perfect World Entertainment
Embracer Group IPs

This week, Embracer also revealed its intention to purchase Asmodee as the French publisher of board and card games as well as RPGs with an estimated value of $2.75 billion. Naturally, the acquisition will take a little longer due to its magnitude. Embracer’s noteworthy gaming IPs include Saints Row, Dead Island, Goat Simulator, Darksiders, Metro, Satisfactory, TimeSplitters, Wreckfest, Insurgency, and Borderlands.

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