Embrace wanted to build a video game empire, but the house of cards quickly showed signs of collapse in recent months, leading to numerous layoffs and the closure of certain studios like Free Radical Design And Volition. Under a pretext linked to international geopolitics, the group recently announced that it was separating from Saber Interactive and part of the studios under its aegis against 247 million dollars (or even almost 500 million with 4A Games And Zen Studios), But it is not finished. It was also rumored thatEmbracer Group looking to sell Gearbox Entertainment and that is ultimately the case. So, who is the lucky one? Well, a publisher with whom the entity was already very close and which you obviously know: Take-Two Interactive !
The company led by Strauss Zelnick pulled out the big bucks for this transaction as indicated in its Press release (see here that ofEmbrace), since it is evaluated at nearly $460 million. As a reminder, the merger which took place in 2021 resulted from a transaction estimated at 1.3 billion dollars over six years, with an advance payment of 363 million (188 million in cash and 175 million in shares divided equally over 12 and 24 months) and clauses ofearn out financial up to 715 million and operational up to 300 million over the following six years. Understand from this that the disinvestment in question now is not particularly at a loss for Embraceespecially since it retains part of the assets of Gearbox Entertainment.
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In this way, Take-Two Interactive will come into possession of Gearbox Software (Frisco, Texas), Gearbox Montreal, Gearbox Studio Quebecas well as licenses Borderlands, Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms And Duke Nukem.
As for Embracer Groupit keeps Gearbox Publishing San Francisco (ex Perfect World Entertainment) which will be renamed, with the publishing rights of the license Remnantfrom the future Hyper Light Breaker and some notable unannounced projects, Cryptic Studios and his MMO Neverwinter Online And Star Trek Online, Lost Boys Interactive And Captured Dimensions.
On the side of Gearboxthe entity will now operate as a studio within 2K who is a long-standing partnerstill with Randy Pitchford as CEO and the same management team. The acquisition is expected to close very quickly before the end of the first quarter of fiscal year 2025. Take Twoi.e. before June 30, 2024.
Below you will find the various statements from representatives of Take Two And Embrace.
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“Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise “, said Strauss Zelnick, president and CEO of Take-Two. “This combination improves the financial profile of our existing projects with Gearbox and provides us with the opportunity to drive increased long-term growth by leveraging all of Take-Two’s resources across all of Gearbox’s exciting initiatives.” »
“ With nearly 20 years of collaboration, Gearbox has played a vital role in our successgiven its unique ability to create interactive entertainment experiences featuring beloved characters, exciting new worlds and humorous storytelling,” added David Ismailer, president of 2K. “We are excited to welcome Randy Pitchford and his team of passionate and talented developers to 2K and look forward to releasing many projects in the future as colleagues.” We've loved collaborating with Gearbox on every iteration of the Borderlands franchise and are excited to actively participate in the development of the next installment in the series. »
“Joining forces with Take-Two Interactive and 2K will help take Gearbox to the next level,” said Randy Pitchford, founder and CEO of Gearbox Entertainment. “Take-Two and 2K have repeatedly demonstrated their commitment to our engine of generating creativity, happiness and profit. We have set the bar [haute] in interactive entertainment and achieved remarkable results with groundbreaking and record-breaking games when we worked together independently as partners. I am incredibly excited about what we can accomplish now that we are fully united. »
“Today’s announcement marks the outcome of the final structured divestment process and constitutes an important step in transforming Embracer into the future with significantly lower net debt and improved free cash flow. Through this transaction, we reduce business risks and improve profitability as we transform into a simpler, more focused business. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all interested parties. Randy and the team have been great team members over the past few years, and I want to thank them all for that. As one of the largest game developers in the world, I am confident that Gearbox will continue to innovate and thrive in its new home within Take-Two,” says Lars Wingefors, co-founder and CEO of Embracer.
“As a significant long-term shareholder of the Embracer Group, I believe in the Embracer Group's strategy for the future and I am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment. My main interest is still Gearbox, especially our talent and our customers. I personally want to assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best possible », declares Randy Pitchford, founder and CEO of Gearbox Entertainment.
Yes, you read that right and it's not really a surprise, but the development of a new Borderlands is therefore formalized ! We also learn that Gearbox currently has six projects in various stages of production, including five sequels, with at least one new license. Homeworld 3 is counted in the lot.
Take Two can therefore rub our hands and thank the millions obtained in particular thanks to GTA Online. Waiting Borderlands 4or whatever it's called, you can find previous episodes and their DLC at the house of Gamesplanet if you play on PC.
See as well : CINEMA: Borderlands, a completely screwed up first trailer, but is it enough?
 Alexandre SAMSON (Omega Law)Responsible Proofreader – Editor | ||
| Addicted to Assassin's Creed and Destiny, big fan of RPGs and passionate about video game experiences in general. Reader of comics (DC) and various mangas (One Piece!). Chemist by training and Whovian at heart. | ||
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