Embracer Group has been going through what many would say is an arduous year. The company has been reeling since its deal with Saudi Arabia fell through this past May, which caused the company’s stock to go into a freefall. With so much cost-cutting and saving, Embracer took the next step in order to secure a financially resolute future, at least for the time being. The company has announced that they have successfully extended their credit and loan facilities well into 2025, giving them some more time to recoup those losses.

Embracer has reached an agreement with its main credit facilitator to extend their credit and loan facilities into 2025.https://t.co/KsRlfM3wq8 pic.twitter.com/UFUs7p0EPs

— Knoebel (@Knoebelbroet) December 18, 2023

Embracer will now have until February 2025 to pay back their main credit facilitator, while the main loan provider has agreed to give them until May 2025. The combined amount that Embracer owes is estimated at a nominal value of SEK 1.7 billion, which equates to roughly $166.2 million. This newly amended agreement also mandates that Embracer will make payments each quarter, with some additional fees that amount to around SEK 2.6 billion, or $254.1 million. Embracer CEO Lars Wingefors states that this new extension is “aligned with out own agenda and puts us in a stronger position as we transition from a heavy investment mode to a highly cash-flow generative business.”

As we already mentioned, Embracer has been doing whatever they can to cut costs in order to mitigate more bills and payouts. This unfortunately included laying off more than 900 employees this past month, which is a massive amount of developers losing their jobs. In addition, they also shuttered several studios that the had acquired over the years including Volition Studios, Onoma, and Free Radical Design. As we enter the year 2024, Embracer is hoping that their cash flow will keep them afloat and with an increased revenue. Even so, that payback amount is massive, and only time will tell if they’re able to continue operations past 2025.