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Borderlands developer Gearbox is changing hands again for $460 million: Take-Two Interactive is acquiring the US studio from Embracer Group.
The media reports that were already doing the rounds last fall have been confirmed today: Immediately before the end of the financial year, Europe's second-largest game manufacturer is parting ways with one of its largest acquisitions. The Swedish Embracer Group is reducing its massive cost and debt burden by selling the Texas studio Gearbox Entertainment – to the US games giant Take-Two Interactive (Grand Theft Auto, Red Dead Redemption, NBA 2K).
Part of the package includes Gearbox Software (based in Frisco / Texas), Gearbox Montréal, Gearbox Studio Quebec and the game brands Borderlands, Homeworld, Brothers in Arms, Duke Nukem and Risk of Rain.
Embracer will retain Gearbox Publishing San Francisco (will be renamed), the rights to several games (Hyper Light Breaker, Remnant), Cryptic Studios (Neverwinter Online, Star Trek Online) and two other game developers, all of which will be distributed across the existing Embracer structures.
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Take-Two will pay $460 million, the equivalent of around €425 million. When it was taken over in February 2021, Embracer put $363 million on the table – including performance bonuses, the deal would have totaled over a billion dollars. Since then, Gearbox has been one of the main pillars in the extensive Embracer construct, which also includes THQ Nordic (Vienna) and Plaion (Munich) along with their studio and publisher subsidiaries.
This closes a circle, as Take-Two has been acting as a marketer for the extremely successful shooter series with the 2K label since 2009 Borderlands. Part 3 was released in autumn 2019 for PC, Xbox and PlayStation. A star-studded film of the same name will be released in cinemas in August – starring Kevin Hart, Cate Blanchett, Jamie Lee Curtis and Jack Black.
Just a few weeks ago, Embracer spun off its US division Saber Interactive – also with the aim of maneuvering the gaming ship back into calmer waters. The Swedish company had grown too quickly with purchases worth billions in some cases – the failed entry of an investor (according to reports from Saudi Arabia) had ultimately initiated a cascade of restructuring measures. Since then, more than 1,400 jobs have been cut and entire studios have been closed.
The Gearbox sale has a very immediate impact on Embracer's short- and medium-term liabilities and obligations and improves cash flow.
Embracer CEO Lars Wingefors: “With this transaction we will reduce risks and improve profitability by making us a leaner and more focused company. After exploring multiple options for Gearbox, I am happy that we have found a solution that is in the best interest of our shareholders. Randy and his team have been great partners over the past few years – and I want to thank everyone for that. Gearbox is one of the world's greatest game developers – I'm sure the studio will continue to innovate and thrive in Take Two's new home.”
Gearbox founder and CEO Randy Pitchford: “As one of Embracer's large, long-term shareholders, I believe in Embracer Group's strategy and am totally convinced that this transaction is the best possible scenario – with a very positive outcome for Embracer Group, Take Two and of course Gearbox Entertainment. My top interest is always Gearbox, especially with regard to the workforce and our customers. I would like to personally reassure fans of our games that this agreement will ensure that the upcoming innovations are as good as possible.”