Take-Two snaps up Gearbox for $460 million, as Embracer Group continues to divest its core assets

Shortly after the divestment of Saber Interactive, another operative group is leaving Embracer. The Swedish holding company has just announced its decision to sell Gearbox Entertainment to Take-Two.

Embracer's $460 millon sale of Gearbox Entertainment detailed: what assets Take-Two will receive

Tiny Tina’s Wonderland

According to a press release, Embracer Group will sell Gearbox Entertainment for SEK 4.9 billion ($460 million). The transaction, which consists entirely of newly issued Take-Two shares, is expected to be completed during the first fiscal quarter ending June 30, 2024.

As a result of the divestment, Take-Two will receive:

  • Gearbox Software;
  • Gearbox Montréal;
  • Gearbox Studio Quebec;
  • Rights for the following IPs: Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem.

Some assets, however, will remain with Embracer and will be integrated into other parts of the holding company:

  • Gearbox Publishing San Francisco (fka Perfect World Entertainment), including publishing rights for Remnant, Hyper Light Breaker, and “other notable unannounced game releases”;
  • Cryptic Studios — Neverwinter Online, Star Trek Online;
  • Lost Boys Interactive;
  • Captured Dimensions.

Randy Pitchford will remain the CEO of Gearbox Entertainment, which will now become part of 2K. The latter has been working closely with the studio for many years, having published all the titles in the Borderlands series.

“My primary interest is always Gearbox, especially our talent and our customers,” Pitchford noted. “I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be.”

Gearbox currently has six games in various stages of development, including a brand new IP and five sequels (two of them are the next Homeworld and Borderlands titles). Take-Two plans to invest in new projects to expand the studio’s successful franchises.

“With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling,” 2K president David Ismailer said in a statement.

As for Embracer Group, the sale of Gearbox will reduce its net debt by roughly $300-330 million. “Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company,” CEO Lars Wingefors said.

First reports about the sale of Gearbox Entertainment appeared last September, with sources telling Reuters that the company approached Goldman Sachs and Aream & Co to explore divestment options. In February 2024, Pitchford informed employees that a “decision has been made regarding the studio’s future.”

Earlier this month, Embracer Group sold Saber Interactive for $247 million, along with subsidiaries like 3D Realms, Slipgate, 4A Games, and Zen Studios.

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