Swedish video games behemoth Embracer Group purchased Gearbox for $1.3 billion again in 2021. Simply over three years later, Embracer Group is divesting Gearbox Leisure to 2K Video games and Rockstar father or mother firm Take-Two Leisure for $460 million. The acquisition is anticipated to finalize by the top of June.
Embracer will retain one piece of the Gearbox pie nevertheless, within the type of Gearbox Publishing San Francisco, which holds publishing rights to the Remnant sequence and Hyper Mild Breaker, along with “different notable unannounced sport releases”. The remaining arm of the enterprise will likely be renamed.
Embracer Group has been ruthlessly downsizing to remain afloat, after years of seemingly month-to-month studio and writer acquisitions. It offered off Saber Interactive final month to the tune of $247 million, and laid off round 1,400 individuals in 2023. Final 12 months it shut Saints Row studio Volition and Sq. Enix Montreal, to call only a small handful of its large contractions. Rumors that Gearbox was on the out began way back to September final 12 months.
Embracer’s latest doom and gloom is in stark distinction to 2021-22: these have been the times when the corporate was making enormous acquisitions ranging Lord of the Rings by way of to a few of Sq. Enix’s former tentpole western studios, and receiving large investments from Saudi Arabia. However following the collapse of a $2 billion deal in 2023, which prompted an instantaneous and “complete” restructuring of the enterprise, a lot of the studios introduced below the Embracer Group umbrella have suffered to at least one extent or one other. For sure, a hell of so much will need to have rested on that deal.
“In the present day’s announcement marks the results of the ultimate structured divestment course of and is a vital step in remodeling Embracer into the long run with notably decrease web debt and improved free money move,” Embracer CEO Lars Wingefors stated in a ready assertion. “By way of the transaction, we decrease enterprise danger and enhance profitability as we transition to changing into a leaner and extra centered firm.”
Gearbox founder and Randy Pitchford had his say as properly: “As a big long-term Embracer Group shareholder, I imagine within the technique for the Embracer Group going ahead and am utterly satisfied that this transaction is the absolute best situation and an apparent web optimistic association for Embracer Group, for Take-Two and, after all, for Gearbox Leisure. My main curiosity is all the time Gearbox, particularly our expertise and our prospects. I need to personally guarantee followers of our video games that this association will be certain that the experiences we’ve got in growth at Gearbox would be the greatest they’ll probably be.”
Two-Two CEO Strauss Zelnick additionally indicated in his personal ready assertion that these company machinations are for the better good. Gearbox will fall below the 2K umbrella as a studio, presumably with a give attention to Borderlands video games, which 2K has revealed because the sequence began in 2009. For its $460 million, Take-Two additionally will get different Gearbox IP together with Homeworld, Threat of Rain, Brothers in Arms, and Duke Nukem.