Embracer Group's Stock Plummets Over 23% After Disappointing Quarterly Report
Embracer Group's stock fell 23% post quarterly report; major shareholder Matthew Karch increases his stake significantly.
Key Points
- • Embracer's stock dropped over 23% following a disappointing quarterly report.
- • Matthew Karch purchased 5 million shares, raising his stake to 5.5%.
- • Karch's total shares are now valued at nearly 1 billion SEK.
- • He remains the fourth-largest shareholder behind three other major stakeholders.
On August 16, 2025, Embracer Group experienced a staggering decline of over 23% in its stock price after the company released a disappointing quarterly report. The report has been described by analysts, including Johan Wendel, as one of the weakest in the company's history, primarily due to a significantly revised forecast for the fiscal year.
In light of this dramatic downturn, Matthew Karch, a major shareholder in Embracer, made a strategic move by purchasing 5 million shares of the company. This acquisition increased Karch's stake to 5.5% of the company's capital and granted him 4.1% of the voting rights. Following this purchase, Karch’s total stake in Embracer is now valued at nearly 1 billion SEK, calculated based on the closing stock price following the decline.
Despite this substantial investment, Karch has not advanced in the rankings of major shareholders, remaining in fourth place behind CEO Lars Wingefors, the Saudi Savvy Gaming Group, and the fund management of the Norwegian bank DNB. This latest development highlights both the challenges faced by Embracer following its quarterly performance and the confidence expressed by Karch amid this turbulent period.