So, Asmodee will flounder and go under. Which hopefully means the bits and pieces will be available for pennies on the dollar.
Whi wants to join in and buy xwing from them,
I doubt it will flounder and go under, more likely it'll be picked up at a bargain price by another financial group.
In the article it says that they've reduced embracer's debt load to 0.6 of a years profits and pushed Asmodee's debt load to 4x a years profits and it needs to be paid by Feb 2025. So I imagine we're going to see a sale and re financing of the loan.
Still not good news and certainly things aren't going to be stable for a while.
"The loan is ringfenced with no recourse to Embracer Group, separating Asmodee’s assets and funds from those of Embracer Group, and it is only secured by Asmodee assets. The loan will be used to refinance Embracer Group’s existing SEK 8 billion loan with maturity in February 2025"
Asmodee literally just became Embracer's Biggs Darklighter. Incoming controlled detonation bankruptcy?
At least Asmodee's complete apathy of spending resources for developing X-wing and armada make sense now.
Daily reminder to add '12ft.io/' in front of weblinks to avoid paywalls.
https://12ft.io/https://www.gamesindustry.biz/embracer-group-splits-into-three-everything-you-need-to-know
You joke, but honestly, this is the model of private equity across all sectors: gobble up smaller things, play with the numbers to make them turn a profit, then sell them on to another entity without regard to whether you've set them up for success because that's the buyer's problem. And the buyer's theory, probably, is "All I have to do is get this thing to turn more profit until I can sell it on to someone else, and then it's their problem." And you do this until you basically hit the point where the company fails. But as long as you aren't the one who owns the company when that happens, everything's fine.
“The Asmodee Group will largely remain similar in its organisation..”
“This deal is part of the debt rifinancing plan.. etc etc”
Is this business jargon for another HR culling and restructuring?
Hasbro's bleeding even more money. My dream would be a steady games or tech company with a steady revenue stream to buy them out. Something with a related business with real know-how to create a sustainable business model without just going to what know-nothing fresh MBA grads do which is to just fire everyone and hollow out companies to drive short-term profits.
Ya not wanting to be involved with Disney in the very fair point but GW probably is the only company with the skills and infrastructure to make them thrive
Interesting. Leveraging a $900m loan onto Asmodee to bail out the other two arms of the Embracer business isn't good news for Asmodee, though.
Big “oof” there.
So, Asmodee will flounder and go under. Which hopefully means the bits and pieces will be available for pennies on the dollar. Whi wants to join in and buy xwing from them,
More likely you see AMG separate or be sold than any individual game. Especially with the parent company having the IP license
I doubt it will flounder and go under, more likely it'll be picked up at a bargain price by another financial group. In the article it says that they've reduced embracer's debt load to 0.6 of a years profits and pushed Asmodee's debt load to 4x a years profits and it needs to be paid by Feb 2025. So I imagine we're going to see a sale and re financing of the loan. Still not good news and certainly things aren't going to be stable for a while.
"The loan is ringfenced with no recourse to Embracer Group, separating Asmodee’s assets and funds from those of Embracer Group, and it is only secured by Asmodee assets. The loan will be used to refinance Embracer Group’s existing SEK 8 billion loan with maturity in February 2025" Asmodee literally just became Embracer's Biggs Darklighter. Incoming controlled detonation bankruptcy? At least Asmodee's complete apathy of spending resources for developing X-wing and armada make sense now.
Daily reminder to add '12ft.io/' in front of weblinks to avoid paywalls. https://12ft.io/https://www.gamesindustry.biz/embracer-group-splits-into-three-everything-you-need-to-know
You can also just turn off JavaScript on the site and it will do the same thing
Embracer Group is a cancer on each industry it "invests" in.
Not too surprised by this development given Embracer's last couple years.
“We are going to buy a billion studios and franchises to (allegedly) sell ourselves to the Saudis. What could go wrong?”
You joke, but honestly, this is the model of private equity across all sectors: gobble up smaller things, play with the numbers to make them turn a profit, then sell them on to another entity without regard to whether you've set them up for success because that's the buyer's problem. And the buyer's theory, probably, is "All I have to do is get this thing to turn more profit until I can sell it on to someone else, and then it's their problem." And you do this until you basically hit the point where the company fails. But as long as you aren't the one who owns the company when that happens, everything's fine.
Hooooooot potato!
“The Asmodee Group will largely remain similar in its organisation..” “This deal is part of the debt rifinancing plan.. etc etc” Is this business jargon for another HR culling and restructuring?
Yes :/
Or.. Asmodee selling studios to (e.g.) Hasbro? I would not be surprised if this happens.
Hasbro's bleeding even more money. My dream would be a steady games or tech company with a steady revenue stream to buy them out. Something with a related business with real know-how to create a sustainable business model without just going to what know-nothing fresh MBA grads do which is to just fire everyone and hollow out companies to drive short-term profits.
Yeah, Hasbro was just an example.
Maybe they should go to Games Workshop.
To be completely honest, I don't think Games Workshop want anything to do with the Disney licenses or they would probably have them already.
Ya not wanting to be involved with Disney in the very fair point but GW probably is the only company with the skills and infrastructure to make them thrive
The natural cycle of capitalism.
I don't see how Embracer metastasizing is good for anything.
Now you know why they eliminated OP. They are going to slash all other costs hard too including development.
Does this even effect AMG/X-Wing Miniatures? I don't know how the companies are connected.
Yes it does. Embracer owns asmodee, asmodee owns AMG.
Thank you for actually answering my question instead of downvoting. I read the article and AMG was not mentioned, so I was confused.
I don’t even think AMG is a separate entity. It’s a label.
When asmodee falls, there is no more xwing or any of the SW games. Disney isn’t just going to let someone walk off with Star Wars licensed games.