Square Enix  (9684.T-JP: Tokyo) has entered into an agreement to sell several overseas studios to the Embracer Group.  These holdings include Crystal Dynamics and Eidos Interactive.  This includes IP such as Tomb Raider, Deus Ex, Thief and Legacy of Kain.  The transfer price was listed as $300 million.


Square Enix selling its Western studio holdings is not a surprise.  What is surprising is the low price Embracer paid for the IP.  Eidos/Crystal Dynamics had some significant success with franchises like Tomb Raider back in the 1990s.  These franchises seem to have a great deal of unrealized value.

For its part, Square claims the “transaction enables the launch of new businesses by moving forward with investments in fields including blockchain.”  Blockchain of course is currently hot, but it is also unproven and generally frowned upon by gamers.

Overall DFC believes Embracer received the best of this deal.

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