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 to acquire Gearbox from Embracer for $460 million
28.03.2024 - 05:27 / gamesindustry.biz / Randy Pitchford
Take-Two will acquire developer Gearbox from Embracer for $460 million.
The deal for the studio, which operates out of three offices in the US and Canada, is expected to complete in June.
Gearbox is responsible for the Borderlands series, which is published by Take-Two, and the two were already working together on the next Borderlands game. Alongside Borderlands, Take-Two will also take ownership of Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem, alongside future Gearbox titles. Take-Two says that Gearbox are working on six titles, including two Borderlands games and two Homeworld titles, plus 'at least' one new IP.
Gearbox will operate within Take-Two’s 2K label and will continue to be led by founder and COE Randy Pitchford.
Embracer Group picked up Embracer in a deal potentially worth $1.3 billion in 2021. This was mostly a performance-based fee, with an upfront cost of $363 million, of which $175 million were in Embracer shares.
This sale is part of Embracer's ongoing restructuring program. It follows a $2 billion deal falling through for Embracer, resulting in multiple layoffs and the closure of studios. Earlier this month, it sold Saber Interactive and associated studios for $247 million.
“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,” said Take-Two CEO Strauss Zelnick.
“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.”
2K boss David Ismailer added: “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.”
And Pitchford stated that the new partnership will allow Gearbox to “ascend to our next level”.
“I’m incredibly excited about what we can accomplish now that we're fully aligned as one."
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