Embracer Group, a Swedish publishing group known for its rapid acquisition pace, recently faced a setback when a mysterious partner backed out of a $2 billion deal aimed at driving its gaming ambitions. While the identity of the partner remained undisclosed, a new report suggests that Savvy Games Group is the party that withdrew from the agreement in May.

Savvy Games Group is owned by Saudi Arabia’s sovereign wealth Public Investment Fund and acts as a vehicle for the country’s gaming industry investments. Prior to the collapse of the deal, Savvy had already invested $1 billion in Embracer, which enabled the company to invest in various gaming properties such as Limited Run Games, Lord of the Rings and The Hobbit IP rights, and well-known titles like Tomb Raider and Deus Ex.

Following the failed deal, Embracer announced a restructuring plan that involved shutting down or selling studios and temporarily ceasing some game development. The process is expected to conclude on October 1st, and studio pruning has already begun.

The reason behind the collapse of the deal remains unknown, but it aimed to establish Savvy as a major gaming label. The Saudi Public Investment Fund, through Savvy, has been making significant investments in the global gaming industry, acquiring esports firms and investing in renowned gaming companies such as Nintendo, Take-Two Interactive, and Capcom.

Embracer CEO Lars Wingefors previously addressed criticism regarding the Saudi group’s investment, asserting that the company’s Swedish values remained unchanged. However, concerns were raised due to the Saudi government’s human rights violations. Embracer had remained tight-lipped about the identity of the partner involved in the abandoned deal.

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