First announced two years ago, at Sony’s showcase in 2021,Star Wars: The Old Republic’s remake is seemingly being officially scrubbed from around the internet. Could the project be another casualty as part of Embracer Group’s reorganization?
Report: Embracer Groups exploring sale of Gearbox Entertainment
12.09.2023 - 14:37 / thesixthaxis.com / Randy Pitchford / Lars Wingefors
Reports have emerged that Embracer Group are exploring the sale of Gearbox, as the once omnivorous publisher holding company continues to undergo a large-scale restructuring program after a $2 billion investment deal fell through earlier this year.
As reported by Reuters, Embracer Group are considering all options for Gearbox including a sale, per three people familiar with the matter. Embracer has apparently already received interest from some third parties, and is reportedly working with Goldman Sachs and Aream & Co. to explore a sale. They do caution that these are not advanced talks and could still come to nothing.
Of all Embracer’s many sub-divisions, selling off Gearbox could make the most sense, given the company’s links and ties to other publishers and tangled web of IP and licensing. The Borderlands series and its spin-offs, for example, are published by 2K Games and not by Gearbox themselves, and this series remains the jewel in the company’s crown. They also own the Homeworld franchise, though the third game is in development with private studio Blackbird Interactive, and have been publisher on indie hits like Remnant II, Hyper Light Breaker, Risk of Rain 2 and more.
The Gearbox umbrella has grown in the last few years, opening a Canadian studio in August 2021, acquiring Lost Boys Interactive, who had supported Tiny Tina’s Wonderlands during development, absorbing Perfect World Entertainment and Cryptic Studios as they were acquired, and Eidos Shanghai (now Gearbox Studio Shanghai) and for the last 10 months, taking control of Saints Row developer Volition. Oh, and there’s the movie-making venture as well. The company headcount has ballooned from around 600 in April 2021 to 1,300 just a year later.
Embracer Group acquired Gearbox back in April 2021 for $1.3 billion. As part of the deal Gearbox founder and CEO Randy Pitchford continued to lead the new operating group and Gearbox employees became “significant” shareholders in Embracer as well.
“Gearbox is arguably one of the most creative and valuable independent developers in the world. We believe that the resources offered by Embracer will position Gearbox for continued significant growth in the years to come” saaid Lars Wingefors, Founder and Group CEO of Embracer Group at the time.
What’s not clear is how Embracer now values the Gearbox group and the IP. They’ve dramatically inflated the headcount in the last two years, and they’ve added more IP like Risk of Rain and Remnant to its catalogue in that time alongside Borderlands, Duke Nukem and Homeworld. But again, while Gearbox owns the Borderlands IP, the games are permanently tied to a publishing deal with 2K Games.
With that in mind, you’d have to say 2K Games and parent Take-Two would be the
The website gametalkz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Authors
Popular Topics
gamingbolt.com
22.09.2023 / 19:27
Embracer Group Says it Will be Closing “a Few” More Studios
In the aftermath of Embracer Group failing to close a deal with Savvy Group worth $2 billion earlier this year, the company has suffered some financial setbacks. In June, it revealed that it was instituting a restructuring program that would entail layoffs, studio closures, and upcoming projects being cancelled.
gameranx.com
21.09.2023 / 17:21
Crystal Dynamics Layoffs Continue Embracer Group Restructuring Trend
Embracer Group has quite a few studios under its label. The company is now seemingly in a bind, ranging from various acquisitions and mergers. Financial struggles could be a real issue. In fact, it wasn’t long ago now that we had word of Volition Games shutting down completely. While Embracer Group is striving to restructure its plans going forward, a new round of layoffs has just occurred for another studio under their control. The latest was Crystal Dynamics, who were forced to see several jobs get cut.
destructoid.com
21.09.2023 / 07:57
Crystal Dynamics cuts staff as Embracer Group studio layoffs continue
Embracer Group is a video game company which owns over 70 studios around the world. Things haven’t been looking good for its studios lately, as they have been suffering from layoffs and closures.
blog.playstation.com
21.09.2023 / 03:21
Final Fantasy VII Rebirth hands-on report – playable Sephiroth, Chocobo exploration, Junon and more
Yes, you’ll be able to play as Sephiroth. As part of a new gameplay trailer earlier this year, Final Fantasy VII Rebirth confirmed a key scene from the original would feature in this, the second entry in a three-game project of the seminal PS1 classic. In 1997, that moment – a younger, revenge-driven Tifa facing off against Sephiroth – formed part of an extended playable flashback. Back then, the SOLDIER legend was but an NPC in your party. In last week’s State of Play, a new trailer revealed not only would that flashback be present in Final Fantasy VII Rebirth in some capacity, but an accompanying interview confirmed the One-Winged Angel will be DualSense ready. And now, thanks to a new hands-on with a preview build of the game, we know what playing as Sephiroth will feel like.
gamingbolt.com
20.09.2023 / 23:51
Crystal Dynamics Hit with Layoffs as Part of Embracer Group Restructuring
The Embracer Group has been struggling with financial issues in recent months, having failed to close an undisclosed deal worth $2 billion earlier in the year, in the wake of which the company announced that it would be shuttering studios, laying off employees, and cancelling unannounced games as part of a widespread restructuring program.
eurogamer.net
20.09.2023 / 20:35
Embracer Group layoffs hit Tomb Raider developer Crystal Dynamics
Tomb Raider developer Crystal Dynamics has confirmed ten employees have lost their jobs as part of an «internal restructuring» programme, following multiple accounts from employees that the studio had been hit with lay offs today.
destructoid.com
19.09.2023 / 19:49
Embracer Group’s Beamdog studio hit with layoffs
Embracer Group has reportedly laid off more than 25 employees from Beamdog, according to former employees via LinkedIn, as spotted by GameDeveloper. Beamdog, the studio behind Baldur’s Gate Enhanced Edition, Neverwinter Nights Enhanced Edition, and Mythforce was acquired by Embracer’s Aspyr Media subsidiary in April 2022.
gadgets.ndtv.com
12.09.2023 / 15:59
Borderlands Maker Gearbox Reportedly Up for Sale by Embracer Group
Borderlands developer Gearbox is reportedly up for sale by parent company Embracer Group. As per Reuters, the Swedish conglomerate is looking to restructure following a $2 billion (about Rs. 16,586 crore) deal with Saudi Arabia government-funded Savvy Games Group that fell through, earlier this year. The fallout resulted in the former cutting down on spending, in addition to closing down studios and laying off its employees. Having been acquired merely two-and-a-half years ago, Gearbox is now the latest victim, with some alleged third-party publishers expressing interest in acquiring the developer. No names were mentioned, though they were described as “international gaming groups.”
gamedeveloper.com
12.09.2023 / 13:39
Report: Embracer might sell Gearbox two years after $1.38 billion acquisition
Embracer is reportedly considering the sale of Borderlands developer Gearbox Entertainment just over two years after it purchased the company for $1.38 billion.
techradar.com
12.09.2023 / 09:35
Embracer Group reportedly seeks to sell Borderlands developer Gearbox
Gearbox Entertainment, the developer of the Borderlands franchise, is reportedly being put up for sale by parent company Embracer Group.
gamingbolt.com
11.09.2023 / 20:41
Gearbox Entertainment Could Potentially Go Independent
It’s recently emerged that Embracer Group is considering selling Borderlands developer Gearbox Entertainment, as the company looks to steady itself in a period of financial uncertainty following a failed $2 billion deal with Saudia Arabia’s gaming group earlier this year. However, other options for the studio’s future are being considered as well.