Swedish holding company Embracer Group plans to sell Gearbox Entertainment, the studio known for games like Borderlands, to Take-Two Interactive for USD 460 million. The deal will be settled entirely in newly issued Take-Two shares. Embracer Group aims to sell these shares shortly after the transaction is finalized, expecting to raise approximately USD 300 to 330 million in cash.
According to a news release from Embracer, Take-Two Interactive is set to acquire Gearbox Software and its subsidiaries, Gearbox Montréal and Gearbox Studio Quebec. As part of the deal, Take-Two will gain the rights to popular games like Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. It’s a lot of great franchises for a publisher that’s well-known for its great games.
Embracer Group has decided to keep certain assets, including Gearbox Publishing San Francisco, which will undergo a name change. They will also retain publishing rights for existing IPs, such as the Remnant franchise and the upcoming Hyper Light Breaker, as well as other unrevealed titles. This makes us think that more games will come from the Hyper Light Breaker and Remnant IPs soon. Additionally, Embracer will maintain ownership of Cryptic Studios, Lost Boys Interactive, and Captured Dimensions.
“After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two.”
Lars Wingefors, co-founder and CEO of Embracer
Embracer Group has decided to sell off a part of its business to lower its debt and boost its cash flow. The sale will lead to a big decrease in the amount of money it owes and cut down on future payment obligations and spending. Embracer Group expects that this decision will improve its financial situation and help it run more smoothly.
The deal is expected to be finalized in the first quarter of Take-Two’s fiscal year, concluding in June 2024. It is subject to standard closing conditions, including regulatory approvals, but we all know that kind of stuff is required. This is probably some of the only positive news coming from Embracer. Selling to Take-Two means that games will at least start production, including those from beloved franchises like Borderlands.
