It seems that the $2 billion deal that fell through for Embracer Group was with Savvy Games Group.

That's according to Axios, which reports that it has not only spoken to four people familiar with the deal, but also seen documentation to support the claims. While the outlet was able to confirm that the deal was with Savvy Games Group, it was not able to confirm why the partnership broke down. At the time, Embracer CEO Lars Wingefors (pictured) said that it fell through due to outside factors.

Savvy Games Group is backed by the Saudi Arabian government.

The failed deal has had a deeply negative impact on Embracer, which has said that it may have to cut jobs, as well as kill game projects and close or sell studios. Embracer stock fell dramatically following word the partnership had fallen through and is still down 50 per cent from where it was six months ago.

Back in June 2022, Savvy Games Group acquired a $1 billion stake in Embracer, meaning it owned roughly 8.1 per cent of the company's shares.

Earlier this year, it was reported that Savvy Games Group wanted to invest $38 billion into the Saudi Arabian games industry.

Disclaimer: Alex Calvin is a freelance journalist and writer who has worked with Embracer Group's Dark Horse and Plaion divisions