Intel has announced that its next-gen Lunar Lake "Core Ultra 200" CPUs will offer over 100 AI TOPs to carry the AI PC momentum forward.
28.03.2024 - 10:55 / thesixthaxis.com / Lars Wingefors
A good few months after a sale was first reported to be on the table, Embracer has now confirmed the sale of Gearbox Entertainment to Take-Two Interactive for $460 million. This brings Gearbox in house with long term publishing partner 2K Games, who still had publishing rights to the Borderlands franchise, even with the developer under Embracer’s ownership.
In the sale, Take-Two will acquire the main development side of Gearbox – the main studio in Texas, alongside Montreal and Quebec – and will fully acquire the Borderlands franchise, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem. Embracer will hold onto the publishing arm (which is to be rebranded) and the various IPs that they had assigned to the brand over the last few years, including Remnant and Hyper Light Breaker. They are also retaining Cryptic Studios, Lost Boys Interactive and Captured Dimensions.
While $460 million will go a long way to help clearing Embracer’s accumulated debt, and the sale in general will help to reduce the company’s wage bill, it’s a markedly lower number than the $1.3 billion that Gearbox was bought for. However, it’s not as simple as that. The initial acquisition saw a day one price of $363 million, of which $175 million was in Embracer shares, and with the total price intended to grow to $1.3 billion over the course of six years, if Gearbox met performance targets. Embracer is also able to effectively offload a large chunk of that original purchase through this sale – the net debt will reduce by around $300 million, while cash earnout obligations are reducing by approximately $150 million. Gearbox clearly earnt a good chunk of their value, then.
Speaking of which, this is not a cash buy out by Take Two, but is instead 100% funded by newly issued shares in the company. Embracer could theoretically hold onto these until GTA 6 lands, but given their financial difficulties, they intend to sell them shortly after this deal is closed.
“Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. 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,” says Lars Wingefors, co-founder
Intel has announced that its next-gen Lunar Lake "Core Ultra 200" CPUs will offer over 100 AI TOPs to carry the AI PC momentum forward.
Despite seemingly escaping the Embrace(r) of death through their sale to Take-Two at the end of last month, Gearbox Entertainment haven’t quite emerged unscathed. The studio has confirmed a number of layoffs shortly after the announcement of the sale, while clarifying that no positions related to the development of games were affected.
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Take-Two has announced plans to acquire Gearbox Entertainment from the embattled Embracer Group, in a deal reported to be worth $460 million. The buyout makes logical sense, as Gearbox Entertainment will operate under the framework of 2K Games, which has long been the publisher of the popular Borderlands series. It’ll be led by founder Randy Pitchford.
Alongside announcing plans to buy Borderlands developers Gearbox from the collapsing wreckage of Embracer Group, Borderlands publishers Take-Two overnight casually mentioned that they are "in active development on next installment in Borderlands series". This isn't a formal announcement as much as a businessblast to hype shareholders, so it didn't have anything specific to say about what Gearbox are up to with their wildly popular and deeply unfunny looter shooter series. It had seemed curious that the much-delayed Borderlands movie was coming out five years after the latest main series game and with no new one in sight.
Take-Two is acquiring Gearbox Interactive from Embracer Group for a cool $460m.
We knew Gearbox Software was about to be sold by Embracer, and today, Take-Two announced it had reached an agreement to purchase the 25-year-old Texan developer for $460 million.
More major changes are afoot on the business side of the video game world, as a notable name is changing hands once again. Take-Two Interactive (the parent company of Grand Theft Auto publisher Rockstar and others) has agreed to buy Gearbox Entertainment from the embattled Embracer Group. The deal is worth $460 million in stock and is expected to close by June 30. It had been rumored for several months that Embracer was planning to sell off Gearbox.
Embracer have announced that they're selling Borderlands developers Gearbox Entertainment to Take-Two Interactive, owners of 2K Games and GTA 6 developers Rockstar, for $460 million in Take-Two shares. Three Gearbox Software studios - the flagship studio in Texas, together with Gearbox Montréal and Gearbox Quebec - will change hands as part of the deal. Take-Two will also acquire the Borderlands and Tiny Tina's Wonderlands franchises, together with Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem.
Gearbox Entertainment has revealed that Borderlands 4 is in "active development," and is but one of several projects the developer plans to release with new owner Take-Two.
Troubled gaming conglomerate Embracer announced Thursday that it has agreed to sell Gearbox Entertainment, the studio behind the Borderlands games, to Grand Theft Auto publisher Take-Two for $460 million.
Embracer Group has sold Borderlands developer Gearbox for $460 million USD, after acquiring the developer for roughly $1.3 billion just over three years ago.