Saber Interactive founder Matthew Karch has launched a defence of his former employer Embracer Group and its CEO, Lars Wingefors.
28.03.2024 - 08:15 / gamingbolt.com / Randy Pitchford / Lars Wingefors / Interactive
After months of rumors, the Embracer Group has confirmed an agreement to sell parts of Gearbox Entertainment to Take-Two Interactive for $460 million. The divested assets include Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec and franchises like Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Duke Nukem and Brothers in Arms.
Embracer CEO and co-founder Lars Wingefors said, “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.”
Gearbox Entertainment CEO Randy Pitchford added, ”As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group 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 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.”
Take-Two is no stranger to working with Gearbox, having published the Borderlands series, Tiny Tina’s Wonderlands, the underwhelming Battleborn and long-in-development Duke Nukem Forever under its 2K Games label. Gearbox’s sale follows that of Saber Interactive, recently acquired by a private investor group, and nearly a year of studio closures and layoffs at Embracer.
As for the future of Gearbox, it’s reportedly working on Borderlands 4, with leadership rumored to have faced a reshuffling, and Tiny Tina’s Wonderlands 2, which allegedly saw a “soft” reboot. Stay tuned for more details and potential announcements in the coming months.
Saber Interactive founder Matthew Karch has launched a defence of his former employer Embracer Group and its CEO, Lars Wingefors.
Presumably, the remake of Star Wars: Knights of the Old Republic can’t hold up a newspaper with today’s date to prove that it is actually doing okay and hasn’t been quietly disposed of in a tax report somewhere, Warner Bros-style. As such, it falls to the head of current developers Saber Interactive to promise that the long-in-the-works Star Wars game is still “alive and well”.
Gearbox Entertainment has announced an unspecified number of redundancies following its sale from Embracer last week.
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.
Take-Two is acquiring Gearbox Interactive from Embracer Group for a cool $460m.
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.
Gearbox Entertainment has revealed that Borderlands 4 is in "active development," and is but one of several projects the developer plans to release with new owner Take-Two.
Troubled gaming conglomerate Embracer announced Thursday that it has agreed to sell Gearbox Entertainment, the studio behind the Borderlands games, to Grand Theft Auto publisher Take-Two for $460 million.