Former employees of Annapurna Interactive have reportedly established a new company and taken over the portfolio previously held by Private Division

A newly established company formed by former Annapurna Interactive employees has taken over the portfolio of the indie label Private Division.

According to Bloomberg, this unnamed firm has secured control of franchises such as Kerbal Space Program, which were acquired by Haveli Investments. This Austin-based private equity firm purchased Private Division from Take-Two late last year.

This acquisition includes the distribution rights for an as-yet-undisclosed game by Game Freak and "Tales of the Shire," a Lord of the Rings agricultural game set to be released in March.

Bloomberg indicates that the acquisition will lead to some job reductions among the roughly 20 Private Division employees at Haveli, though the exact number of affected individuals has not been disclosed.

Most of the team at Annapurna Interactive left their positions after discussions with the parent company failed last September.

During these negotiations, it was reportedly revealed that Hector Sanchez, co-founder of Annapurna Interactive, was rehired discreetly as president of interactive and new media by Megan Ellison, CEO of Annapurna Pictures. He was reportedly engaged in gaming initiatives unbeknownst to the rest of the Interactive team, which led to feelings of uncertainty and dissatisfaction concerning the company's trajectory.

Take-Two divested Private Division in November 2024. Strauss Zelnick, CEO, informed GamesIndustry.biz that the decision was part of a broader strategy to concentrate on the company's strengths in producing major hits for AAA and mobile platforms.