Sounds like Embracer Group skipped extension and went straight to extinguishing.
Call me paranoid, but I suspect Embracer Group buys studios specifically to shut them down. They just want the IPs, not the talent.
That is usually what big publishers do… Look at EA and Activision.
It really sucks. But at the end of the day the studios that do get acquired do know of this risk… Only big studios such as Rockstar are safe from this.