Deals just don't fall through, until, apparently, they do. This is the kind of explanation that Embracer Group just gave about a $2 billion deal that, for some reason, fell through and resulted in the company share prices dropping by nearly 50% in a little over 24 hours.
The Swedish company, which made waves in the past few years by acquiring all of the western subsidiaries of Square Enix and Gearbox Entertainment, confirmed that it recently experienced a marked plunge in shares. The drop, which is a staggering 39.28% within 24 hours, came in the wake of an unexpected result of a potential $2 billion deal.
The company had hoped the announcement of the said deal would generate enough cash flow and boost profit forecasts for games currently in development. However, a late-night revelation of the deal's failure brought an unfortunate shift in the company's financial outlook.
As a result, the company's adjusted annual earnings fell from SEK 10.3 billion to SEK 13.6 billion, down to a range between SEK 7 billion and SEK 9 billion.
