We knew Gearbox Software was about to be sold by Embracer, and today, Take-Two announced it had reached an agreement to purchase the 25-year-old Texan developer for $460 million.
That's a far cry from the $1.3 billion spent by Embracer just over three years ago, which likely speaks of the company's desperation to sell (despite already having sold Saber only two weeks ago). Still, there are some caveats. The transaction is said to exclude 'certain third-party publishing and other assets that the buyer considered superfluous to its business. Gearbox had started publishing third-party games like Tribes of Midgard, Remnant II, and the upcoming Hyper Light Breaker; it is unclear what will happen to them.
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The $460 million will be paid entirely in freshly issued common stock Take-Two shares. The acquisition is expected to be completed before the end of June, and Gearbox will operate as a studio within the 2K label.
The new owner of Gearbox also provided an overview of the developer's upcoming lineup. There are six game projects in various stages of development, including five sequels, two of which are from the Borderlands and Homeworld franchises and at least one new IP. We all knew of Homeworld 3, of course, which is due to launch in May after several delays. The big news is the new Borderlands game, which had been rumored for some time.
Furthermore, Take-Two expressed an interest in investing further in new projects and in the developer's existing franchises. Strauss Zelnick, Chairman and CEO of Take-Two, stated:
Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise. This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.
David Ismailer, President of 2K, said:
With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling. We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues. We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series.
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A recent study has underscored a groundbreaking achievement, showing that 4.5 million gamers worldwide have significantly advanced microbial evolutionary research by playing a minigame within Borderlands 3. In a collaborative effort between academic researchers, a gaming development company, and Borderlands 3 players, the tremendous potential of gaming and scientific endeavors has been demonstrated.
It's unfortunately time for yet another round of layoffs in the gaming industry as Take-Two Interactive announced a 5% reduction of its workforce. This translates to around 600 employees and follows similar reductions announced in the last few months by the likes of Epic Games, Riot Games, Microsoft, Sony, and Electronic Arts, not to mention many other such situations that occurred at smaller studios like Supermassive Games and Hidden Path Entertainment to name a couple.
Grand Theft Auto publisher Take-Two has announced it will lay off five percent of its 11,000-strong workforce — equating to around 550 people — and cancel multiple in-development projects. The company said the move was the next stage in its ongoing restructuring plan, which began in February.
Take-Two Interactive is embarking on another cost cutting program, and this one will see the company layoff about 5% of its employees by the end of the year.
Take-Two Interactive plans to lay off 5 percent of its workforce, or about 600 employees, by the end of the year, as reported in an SEC filing Tuesday. The studio is also canceling several in-development projects. These moves are expected to cost $160 million to $200 million to implement, and should result in $165 million in annual savings for Take-Two.
The highly successful indie survival game V Rising is exiting early access on May 8, so Swedish developer Stunlock Studios has released new information on what players will find in version 1.0.
Baldur's Gate 3 has completed its own Grand Slam of Game of the Year Awards with last night's win at the BAFTA ceremony, following its previous triumphs at The Game Awards, Golden Joystick, New York Game Awards, DICE Awards, NAVGTR Awards, Steam, GDC Awards, and our own Awards.
This GeForce NOW Thursday is headlined by the addition of Fallout 4 and Fallout 76, which celebrate the release of the TV series adaptation (available now for streaming on Prime Video).
Take-Two has announced plans to acquire Gearbox Entertainment from the embattled Embracer Group, in a deal reported to be worth $460 million. The buyout makes logical sense, as Gearbox Entertainment will operate under the framework of 2K Games, which has long been the publisher of the popular Borderlands series. It’ll be led by founder Randy Pitchford.