Why Embracer Group Stock Zoomed 11% Higher Today
Going light, lean, and exiting Russia is a winning strategy for Embracer Group (OTC: THQQ.F), at least judging by the initial investor reaction to it. The European video game company enjoyed a nearly 11% boost to its share price following its Thursday announcement of divestment of certain assets. That figure was well higher than the 0.1% bump of the S 500 index on the day.
That morning, Embracer announced that it has finalized a deal to sell off a set of assets held by one of its business units, video game developer and publisher Saber Interactive. The buyer is Beacon Interactive, which is controlled by a Saber co-founder.
That deal, originally announced in mid-March, centers around a clutch of assets operating in Russia. Now that it has been completed, Embracer no longer operates in that country. It added that the purchase price was $247 million; this includes assumed earn out liabilities totaling $44 million. Of the former amount, $203 million will be paid in promissory notes, to be repaid in cash by this coming Dec. 31.
Source Fool.com
