Borderlands studio Gearbox sold to Take-Two in $460 million USD deal
Embracer splits with another subsidiary
Embracer Group has sold parts of Gearbox Entertainment to Take-Two Interactive in yet another large divestment. According to Embracer, Take-Two is paying $460 million USD to acquire three studios under Gearbox as well as several IPs owned by the publisher.
Gearbox Software in Texas, Gearbox Montréal, and Gearbox Quebec will all go to Take-Two. As a bridal gift they’ll bring the rights to the Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem franchises.
Embracer keeps Gearbox Publishing located in San Francisco, which will be renamed as part of the deal, Cryptic Studios including its active MMOs Neverwinter Online and Star Trek Online, Lost Boys Interactive, and Captured Dimensions. All of them will be more closely integrated into the wider Embracer framework in the future – similarly to the studios the company retained after its divestment of Saber Interactive.
“Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company,” explained Embracer CEO Lars Wingefors. “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.”
Founder and CEO of Gearbox, Randy Pitchford, called the situation the “best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment.”
“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,” he added.
This deal is expected to be closed by June 2024, subject to regulatory approval.
Embracer is currently undergoing a massive cost-cutting program, which already led to several studios under its umbrella being shut down or experiencing layoffs – more spending cuts as well as divestments are expected to follow throughout the year.
