Embracer on collapsed $2bn deal: "We have put this behind us"

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Embracer Group is keen to move on from the collapse of a partnership worth at least $2 billion, claiming the deal is now "history" and the company has "taken control in our own hands."

That's according to CEO Lars Wingefors, who was quizzed by investors during the company's latest earnings call (transcribed by Seeking Alpha) about the potential collaboration with an unnamed partner that was revealed back in May.

At the time, Wingefors said the partnership would have "set a new benchmark for the industry" but fell apart at the last minute due to "external factors."

Earlier this week, it was reported that Savvy Games Group – the publishing and esports firm owned by Saudi Arabia's Public Investment Fund – was the company that backed out of this deal.

During the earnings call, one investor asked Wingefors about these claims, to which the CEO said he would not comment on who the partner was – in part for legal reasons.

He also indicated Embracer and the mysterious partner may explore a similar deal in future.

"You don't comment on business partnerships unless both partners would like to do that," he said. "But again, as stated, when announcing the news last quarter, the background given to us why the partnership didn't happen was not because of the terms or the pipeline of games.

"It was more, 'Yes, they would like to do something in the future, but not now,' which became a 'no' for us."

When pressed further about the deal later, Wingefors said that he believes such a strategic partnership is "still valid."

"We do that with industry partners already today, but this was on the greater scale and Embracer again, being the only company with such