Embracer Group has divested Gearbox Leisure from its steady of online game studios, with Take-Two Interactive buying the corporate for $460 million. This sale is a part of Embracer’s large, ongoing restructuring designed to chop prices after a deliberate $2 billion take care of Saudi Arabia-backed Savvy Video games Group fell via in 2023. The sale comes three years after Embracer acquired Gearbox for $1.3 billion in 2021.
This transfer means Embracer not owns Gearbox’s growth entities, comparable to Gearbox Software program, Gearbox Montreal, and Gearbox Studio Quebec, nor franchises comparable to Borderlands/Tiny Tina’s Wonderlands, Homeworld, Danger of Rain, Brothers in Arms, and Duke Nukem. These belongings will likely be acquired by Take-Two, which owns Rockstar Video games and 2K, amongst different labels. Closing of the transaction is anticipated to happen in fiscal yr Q1 2024/25, pending customary regulatory approvals.
In a press launch from Take-Two, Gearbox confirms it has six titles within the works. 5 are sequels, and two of these sequels are from the Borderlands and Homeworld franchises. It additionally has an introduced new IP in growth.
Nonetheless, Embracer does retain different branches/subsidiaries of Gearbox. That features Gearbox Publishing San Fransisco (quickly to be renamed), which has publishing rights to the Remnant franchise, Hyper Gentle Breaker, and different upcoming unannounced titles. Moreover, Embracer is conserving Cryptic Studios (Neverwinter On-line, Star Trek On-line), Misplaced Boys Interactive, and Captured Dimensions. In response to the press launch, these corporations will likely be “welcomed and built-in into different components of Embracer Group within the coming interval.”
Tiny Tina’s Wonderlands
In a press launch, Embracer CEO Lars Wingefors writes,
“As we speak’s announcement marks the results of the ultimate structured divestment course of and is a crucial step in remodeling Embracer into the longer term with notably decrease internet debt and improved free money move. By means of the transaction, we decrease enterprise danger and enhance profitability as we transition to turning into a leaner and extra centered firm. After evaluating a number of choices for Gearbox, I’m glad that we’ve reached an answer that’s in the most effective curiosity of all stakeholders. Randy and the workforce have been nice workforce members all through the previous years, and I wish to thank all of them for that. As one of many world’s best video games builders, I’m assured that Gearbox will proceed to innovate and thrive of their new dwelling inside Take-Two.”
Gearbox founder and CEO Randy Pitchford provides,
”As a big long-term Embracer Group shareholder, I consider within the technique for the Embracer Group going ahead and am utterly satisfied that this transaction is the absolute best situation and an apparent internet constructive association for Embracer Group, for TakeTwo and, in fact, for Gearbox Leisure. My major curiosity is at all times Gearbox, together with our expertise and our clients. I need to personally guarantee followers of our video games that this association will be certain that the experiences we’ve in growth at Gearbox would be the greatest it may presumably be.”
Earlier this month, Embracer introduced it was promoting Saber Interactive for $500 million. It has additionally laid off staff throughout a number of studios, canceled a large number of in-development video games, and shut down Free Radical Design and Volition Video games completely.