Embracer CEO says it's "too early" to start discussing potential acquisitions following mass layoffs
Following months of layoffs and closures at Embracer Group, CEO Lars Wingefors has informed investors that it is "way too early" for the company to "start talking about" acquiring new studios.
The details:
During a recent investor call (via Rock Paper Shotgun), Wingefors stated that the company's "highest focus and priority" is to "increase profitability and cashflow generation by simply making better products and games" rather than expanding. "Looking to do more [mergers and acquisitions] deals – I think it's way too early to start talking about restarting the M&A engines again," Wingefors said.
The CEO also discussed Embracer's recent sales of Gearbox and Saber Interactive, stating that the companies it sold or divested had "negative cashflow" and that its remaining subsidiaries are "not for sale."
Its restructuring program, which began last year following the collapse of a $2 billion deal, has officially ended. The program resulted in the loss of thousands of jobs, the closure of studios such as Free Radical and Volition, and the cancellation of numerous projects.
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