Take-Two Acquires Gearbox from Embracer, Confirms Development of New Borderlands Game

Embracer Group has made an official move to divest Gearbox Entertainment, completing the sale of the division to Take-Two Interactive for a significant sum of $460 million.

In a recent press release, Embracer Group announced its decision to divest several entities, including Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and various franchises such as Borderlands, Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. Embracer Group will retain ownership of Gearbox Publishing San Francisco (formerly Perfect World Entertainment), along with publishing rights to titles like Remnant, Hyper Light Breaker, and other undisclosed games. Additionally, Cryptic Studios, Lost Boys Interactive, and Captured Dimensions will remain under Embracer Group's umbrella, with plans for integration into other parts of the company. The sale is anticipated to be finalized by the end of June.

Gearbox Entertainment will now become a part of Take-Two Interactive's 2K division, maintaining its leadership under CEO and founder Randy Pitchford. Presently, Gearbox is actively developing both a new installment in the Borderlands series and a new Homeworld game, in addition to working on "at least one exciting new intellectual property," as outlined in a separate press release.It's noteworthy that the entire purchase price of $460 million will be disbursed to Embracer Group in the form of Take-Two shares, rather than in cash. For context, Embracer initially acquired Gearbox for $363 million, with half of the payment in cash and the other half in newly-issued Embracer Group shares.

Moreover, an additional consideration of $1.015 billion (also partly in shares) was agreed upon, contingent upon Gearbox achieving specific milestones within a six-year period.Gearbox and Take-Two Interactive have cultivated a robust and enduring partnership within the gaming industry. At the core of this collaboration is Take-Two's role as the publisher of the immensely popular Borderlands franchise, which has been distributed under its esteemed 2K label. This symbiotic relationship has been instrumental in the success of the Borderlands series, which has garnered widespread acclaim and a dedicated fanbase worldwide.

Beyond their collaboration in game development, Gearbox and Take-Two have ventured into other creative endeavors. One notable example is the forthcoming Borderlands film adaptation, a highly anticipated project that represents a significant expansion of the Borderlands universe onto the silver screen. This ambitious cinematic venture underscores the depth and versatility of the Borderlands franchise, transcending the boundaries of gaming to captivate audiences across multiple mediums.

In addition to their joint efforts on the Borderlands franchise, Gearbox and Take-Two partnered on the release of Gearbox's 2016 title, Battleborn. Although Battleborn's reception was mixed, this collaborative venture exemplifies the ongoing synergy between the two companies and their shared commitment to delivering innovative gaming experiences to players around the globe.Overall, the longstanding relationship between Gearbox and Take-Two stands as a testament to their mutual dedication to pushing the boundaries of creativity and innovation in the gaming industry. As they continue to collaborate on existing projects and explore new opportunities, their partnership remains a driving force in shaping the future of interactive entertainment.

Embracer Group has been undergoing significant restructuring efforts, marked by the divestment of several studios following the collapse of its multi-year acquisition spree last year. In its latest move, Embracer Group divested Saber Interactive, adding to a series of strategic decisions aimed at streamlining its portfolio.Among the notable developments, Embracer Group made the decision to close down Saints Row developer Volition, signaling a shift in focus away from certain projects and studios. Additionally, the cancellation of an unannounced Deus Ex game underscored the company's reassessment of its future game development initiatives.

These measures have unfortunately resulted in the layoffs of over 900 staff members, with further staff reductions anticipated in the future as Embracer Group continues to realign its business strategy. While these decisions have been challenging, Embracer Group remains committed to optimizing its operations and positioning itself for future growth and success in the gaming industry.