Embracer Group has announced that it has sold Remnant and Fellowship publisher Arc Games to owners of the studio, but that the holding company will retain the rights to the aforementioned games.
In a press release, Embracer says it has entered into an agreement to divest both Arc Games and Neverwinter developer Cryptic Studios to Project Golden Arc, a company “owned and led by members of the Arc Games management team”. Funding is being provided by Chinese investment firm XD Inc.
Embracer says it’ll receive around $30 million from the transaction, and that as part of the sale, it will keep the rights to the Remnant franchise and Fellowship, with the latter being transferred to the soon-to-be-spun-off Coffee Stain.
As for Remnant, publishing rights will be transferred from Arc Games to THQ Nordic, which already holds the IP rights for the franchise. Gunfire Games is already a subsidiary of THQ Nordic as well, having been acquired by the publisher in 2019.
Arc Games will, however, retain a co-publishing credit for Fellowship once Coffee Stain is spun off, which Embracer expects to happen in mid-December. It’ll also stay listed as co-publisher for both Remnant games.
Embracer says this transaction won’t affect ongoing development for Fellowship, which will still be handled by Chief Rebel. Confusing as it may sound, Embracer’s upcoming rebrand to Fellowship Entertainment isn’t technically related to ongoing development on the game.
News of Embracer’s divestment of Arc Games and Cryptic Studios comes just after longtime CEO Lars Wingefors stepped down from the company in June, with replacement Phil Rogers immediately stepping up to fill Wingefors’ shoes.
It remains to be seen what Arc Games and Cryptic Studios will get up to after the Embracer sale goes through, but the holding company says it expects the transaction to take place “as soon as customary conditions are fulfilled”. Stay tuned for more.
