2024’s brutal wave of games industry layoffs has seen the likes of Microsoft, EA, Sony, Riot Games, Sega, and many others cutting significant amounts of jobs, and another major name has now joined that list with Take-Two Interactive.
28.03.2024 - 04:43 / ign.com / Randy Pitchford / Rebekah Valentine
Embracer Group has officially divested Gearbox Entertainment, selling the division to Take-Two Interactive for $460 million.
In a press release, Embracer shared that it is divesting Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and the franchises Borderlands, Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. Embracer will retain rights to Gearbox Publishing San Francisco (formerly Perfect World Entertainment, and which it plans to rename), the publishing rights to Remnant, Hyper Light Breaker, and other unannounced games, Cryptic Studios, Lost Boys Interactive, and Captured Dimensions. All of its retained assets will be integrated into other parts of Embracer Group. The sale is expected to close by the end of June.
Gearbox will join Take-Two's 2K division and will continue to be led by CEO and founder Randy Pitchford. Currently, Gearbox has both a new Borderlands and a new Homeworld game in development, as well as "at least one exciting new intellectual property," per a separate press release.
Notably, the full purchase price of $460 million will be paid to Embracer Group in Take-Two shares rather than cash. For comparison, Embracer originally purchased Gearbox for $363 million, half in cash and half in newly-issued Embracer Group shares, with an additional consideration of $1.015 billion (also partially in shares) to be paid out if Gearbox hit certain targets within six years.
Gearbox and Take-Two have had a long-standing relationship, with Take-Two serving as the publisher of the Borderlands franchise via its 2K label. The two also have partnered on an upcoming Borderlands film, as well as Gearbox's 2016 game Battleborn.
Embracer Group has been gradually shedding a number of its many, many studios after an multi-year acquisition spree fell apart last year. Most recently, it divested Saber Interactive, and has made numerous cuts such as the closure of Saints Row developer Volition, the cancellation of an unannounced Deus Ex game, and the layoffs of over 900 staff, with more expected in the future.
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to [email protected].
2024’s brutal wave of games industry layoffs has seen the likes of Microsoft, EA, Sony, Riot Games, Sega, and many others cutting significant amounts of jobs, and another major name has now joined that list with Take-Two Interactive.
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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.
Embracer Group finally confirmed that it is selling Borderlands studio Gearbox Entertainment to Take-Two Interactive, but there’s a catch: Embracer Group will retain ownership of Gearbox Publishing.
Alongside announcing plans to buy Borderlands developers Gearbox from the collapsing wreckage of Embracer Group, Borderlands publishers Take-Two overnight casually mentioned that they are "in active development on next installment in Borderlands series". This isn't a formal announcement as much as a businessblast to hype shareholders, so it didn't have anything specific to say about what Gearbox are up to with their wildly popular and deeply unfunny looter shooter series. It had seemed curious that the much-delayed Borderlands movie was coming out five years after the latest main series game and with no new one in sight.
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.
More major changes are afoot on the business side of the video game world, as a notable name is changing hands once again. Take-Two Interactive (the parent company of Grand Theft Auto publisher Rockstar and others) has agreed to buy Gearbox Entertainment from the embattled Embracer Group. The deal is worth $460 million in stock and is expected to close by June 30. It had been rumored for several months that Embracer was planning to sell off Gearbox.
Embracer have announced that they're selling Borderlands developers Gearbox Entertainment to Take-Two Interactive, owners of 2K Games and GTA 6 developers Rockstar, for $460 million in Take-Two shares. Three Gearbox Software studios - the flagship studio in Texas, together with Gearbox Montréal and Gearbox Quebec - will change hands as part of the deal. Take-Two will also acquire the Borderlands and Tiny Tina's Wonderlands franchises, together with Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem.
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