Murders and Executions: M&A in the games industry
The article analyzes mergers and acquisitions (M&A) in the video game industry, framing them as either "murders" (acquisitions that destroy value and stifle creativity) or "executions" (strategic deals with clear synergy). It examines recent high-profile deals, warning that many fail due to cultural clashes and integration challenges, while offering lessons for better M&A outcomes.
Background
- The author, **Owen Mahoney**, is CEO of **Embracer Group**, a Swedish holding company that became one of gaming's biggest players by buying dozens of studios (Gearbox, Crystal Dynamics, Saber Interactive, Dark Horse) on debt-fueled deals between 2020–2022.
- This piece is Mahoney's defense of Embracer's acquisition strategy. He distinguishes "murders" (hostile takeovers that strip and discard a company) from "executions" (orderly wind-downs of failed projects). He claims Embracer aims for the latter. Critics note Embracer still shut down studios like Volition and laid off thousands after a $2B partnership fell through in 2023.
- **Broader context**: The gaming industry boomed during COVID (2020–21) then crashed as interest rates rose. Debt-funded acquisition sprees reversed; many bought studios were closed. Embracer's stock fell ~80% from its peak, making it a cautionary tale.
- The title references a famous misquote from *The Godfather*: "It's not personal, it's strictly business."