Update
Take-Two has spoken on the acquisition. Randy Pitchford will remain in as Gearbox CEO. In the press release Take-Two notably say:
"Gearbox currently has six key interactive entertainment projects in various stages of development, including five sequels, two of which are from the Borderlands and Homeworld franchises, and at least one exciting new intellectual property. Beyond these plans, Take-Two believes that there are incremental opportunities to invest in new projects and to expand Gearbox's proven franchises."
Original Story
Embracer Group has entered and agreement to divest Gearbox Entertainment today. The company most known for its Borderlands and Brothers In Arms franchises will now join one of the biggest publishers in the world.The deal is worth 460 million USD. Embracer Group CEO Lard Wingefors sent out the following press release:
"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," says Lars Wingefors, co-founder and CEO of Embracer.
The deal is expected to close Q1 fiscal years 24/25, ending June 2024. As part of the deal Take-Two will assume control of:
- Gearbox Software (Frisco, Texas)
- Gearbox Montréal
- Gearbox Studio Quebec
- Borderlands and Tiny Tina's Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem
However not all of Gearbox’s assets will be headed to Take-Two. The assets not included in the deal will integrated into other parts of Embracer Group moving forward. These assets include:
- Gearbox Publishing San Francisco (to be renamed prior to closing, formerly named Perfect World Entertainment), including the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases
- Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online.
- Lost Boys Interactive
- Captured Dimensions
While this news comes as no surprise it is never the less good to get some closure on yet another piece of Embracer Group’s financial troubles.
