Shortly after the acquisition of Gearbox Entertainment by Take-Two Interactive, layoffs have begun at the studio, leaving former employees blindsided and sharing their experiences on social media. The exact number of staff affected is unclear, but the impact seems significant. Embracer Group sold Gearbox for $460 million, marking a substantial loss compared to the $1.3 billion it paid for the studio in 2021, highlighting the volatile nature of the video game industry.
Take-Two Interactive has acquired Gearbox Entertainment from Embracer Group for $460 million as part of Embracer's restructuring efforts following a failed $2 billion deal. The sale includes Gearbox's development entities and franchises, with Take-Two gaining ownership of titles like Borderlands and Homeworld. Embracer retains other branches of Gearbox and is integrating them into the company. Gearbox confirms six titles in the works, including sequels and a new IP. Both Embracer and Gearbox CEOs express confidence in the transaction's benefits for all stakeholders.
Embracer is selling Borderlands developer Gearbox Entertainment to Take-Two Interactive for $460 million in shares, with three Gearbox Software studios and several franchises changing hands. Embracer will retain other studios and game rights, and plans to sell the Take-Two shares for an expected $300-330 million. The sale is part of Embracer's ongoing restructuring program, following layoffs and studio closures, and CEO Lars Wingefors emphasized the need to focus on IPs with greater economic upside.
Take-Two Interactive has acquired Gearbox Entertainment from Embracer Group for $460 million, with the purchase price to be paid in Take-Two shares. Gearbox will join Take-Two's 2K division and continue to be led by CEO Randy Pitchford. The acquisition includes the development of a new Borderlands game, a new Homeworld game, and at least one new intellectual property. Embracer will retain certain publishing rights and other assets, while gradually shedding studios after a failed acquisition spree last year.
Take-Two Interactive Software, Inc. has announced its acquisition of The Gearbox Entertainment Company for $460 million in newly issued shares of Take-Two common stock, deepening its relationship with Gearbox and expanding its portfolio of intellectual property, including the Borderlands franchise. The acquisition is expected to be completed in the first quarter of Take-Two’s Fiscal Year 2025 and will see Gearbox operate as a studio within 2K, led by Founder and CEO Randy Pitchford. The move aims to leverage the full resources of Take-Two across Gearbox’s initiatives and future projects, with incremental opportunities to invest in new projects and expand proven franchises.
Gearbox Entertainment, the developer behind Borderlands, is reportedly in the late stages of being sold and leaving the struggling Embracer Group, following in the footsteps of Saber Interactive. CEO Randy Pitchford shared the news with employees, and more details are expected in March. This potential departure comes after Saber Interactive's confirmation of being sold to private investors for $500 million, marking a significant loss in IP and development talent for the Embracer Group.
Embracer Group is reportedly considering selling Borderlands developer Gearbox Entertainment as it looks to improve its financial situation. The potential sale comes after Embracer Group's acquisition of Gearbox for $1.35 billion earlier this year. International gaming groups have expressed interest, but a deal is not guaranteed. Embracer Group has been undergoing a restructuring program and recently shut down Saints Row developer Volition. The news of a potential sale has led to speculation about the future of Gearbox Entertainment.
Embracer, Europe's largest gaming company, is reportedly exploring options for its U.S. game developer Gearbox Entertainment, including a potential sale, as it seeks to strengthen its finances. Embracer is working with Goldman Sachs and Aream & Co to assess the possibility of a sale after receiving interest from third parties. The move comes as Embracer aims to reduce its net debt and navigate challenging economic conditions. Gearbox, known for the popular game Borderlands, was acquired by Embracer in February 2021. While a deal is not guaranteed, marketing materials for Gearbox have already been made available to potential buyers.
