Swedish video games behemoth Embracer Group purchased Gearbox for $1.3 billion again in 2021. Simply over three years later, Embracer Group is divesting Gearbox Leisure to 2K Video games and Rockstar mother or father firm Take-Two Leisure for $460 million. The acquisition is anticipated to finalize by the tip of June.
Embracer will retain one piece of the Gearbox pie nonetheless, within the type of Gearbox Publishing San Francisco, which holds publishing rights to the Remnant collection and Hyper Mild Breaker, along with “different notable unannounced sport releases”. The remaining arm of the enterprise might be renamed.
Embracer Group has been ruthlessly downsizing to remain afloat, after years of seemingly month-to-month studio and writer acquisitions. It offered off Saber Interactive final month to the tune of $247 million, and laid off round 1,400 folks in 2023. Final yr it shut Saints Row studio Volition and Sq. Enix Montreal, to call only a small handful of its huge contractions. Rumors that Gearbox was on the out began way back to September final yr.
Embracer’s latest doom and gloom is in stark distinction to 2021-22: these have been the times when the corporate was making big acquisitions ranging Lord of the Rings via to a few of Sq. Enix’s former tentpole western studios, and receiving huge investments from Saudi Arabia. However following the collapse of a $2 billion deal in 2023, which prompted a direct and “complete” restructuring of the enterprise, many of the studios introduced underneath the Embracer Group umbrella have suffered to 1 extent or one other. For sure, a hell of lots should have rested on that deal.
“Immediately’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 circulation,” Embracer CEO Lars Wingefors mentioned in a ready assertion. “By means of the transaction, we decrease enterprise danger and enhance profitability as we transition to turning into a leaner and extra targeted firm.”
Gearbox founder and Randy Pitchford had his say as nicely: “As a big long-term Embracer Group shareholder, I imagine within the technique for the Embracer Group going ahead and am utterly satisfied that this transaction is the very best state of affairs and an apparent internet constructive association for Embracer Group, for Take-Two and, in fact, for Gearbox Leisure. My major curiosity is all the time Gearbox, particularly our expertise and our clients. I need to personally guarantee followers of our video games that this association will make sure that the experiences we have now in improvement at Gearbox would be the greatest they’ll probably be.”
Two-Two CEO Strauss Zelnick additionally indicated in his personal ready assertion that these company machinations are for the better good. Gearbox will fall underneath the 2K umbrella as a studio, presumably with a concentrate on Borderlands video games, which 2K has revealed for the reason that collection began in 2009. For its $460 million, Take-Two additionally will get different Gearbox IP together with Homeworld, Threat of Rain, Brothers in Arms, and Duke Nukem.