Embracer Group has announced that it has reached an agreement with Take-Two Interactive for the sale of Gearbox Entertainment to the latter.
The deal is worth $460 million, is set to be completed in the summer and will see Take-Two acquire:
- Gearbox Software (Frisco, Texas)
- Gearbox Montréal
- Gearbox Studio Quebec
- Borderlands and Tiny Tina’s Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem
However, the Embracer Group will retain the following assets as part of the deal:
- Gearbox Publishing San Francisco (to be renamed prior to closing, formerly named Perfect World Entertainment), including the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases
- Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online.
- Lost Boys Interactive
- Captured Dimensions
Embracer has stated that these retained companies will be welcomed into the Embracer Group and will be integrated into various parts of the company in the near future.
“Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two,”
Lars Wingefors, co-founder and CEO of Embracer
”As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment. My primary interest is always Gearbox, especially our talent and our customers. I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be,”
Randy Pitchford, founder and CEO of Gearbox Entertainment.
The news of this deal should not come as a major surprise. In 2023, Embracer laid off over 1400 employees and shuttered several studios including Volition and Square Enix Montreal; they also recently announced the deal to sell off Saber Interactive for $247 Million. This was all after a $2 Billion deal collapsed, which subsequently caused Embracer to undertake a massive restructuring of their business.
Source – Embracer
