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Embracer: gaming ‘roll-up’ battles claims of aggressive accounting

Europe's biggest gaming company, Embracer, has been criticised for its accounting practices and approach to integrating acquired businesses. Sales have increased hundredfold from 2014, but the company's adjusted profits have come under scrutiny. Embracer is seeking to attract international investors

  • Embracer, Europe's largest gaming company, has attracted criticism from hedge funds over its accounting practices and light-touch approach to integrating newly acquired businesses.
  • The company has grown through a four-year acquisition spree, gaining interests in multiple studios, intellectual property, and board games.
  • Sales have increased almost hundredfold, from SKr178mn ($17mn) in 2014 to SKr17bn ($1.64bn) last year.
  • Embracer's adjusted profits have generated criticism as they do not take into account the expenses of paying acquired business owners.
  • The company is seeking to attract more international investors and is considering spinning off some units.
Embracer: gaming ‘roll-up’ battles claims of aggressive accounting
Lars Wingefors created Europe’s biggest gaming company with an acquisitive strategy that has attracted short sellers