Take-Two Interactive is embarking on another cost cutting program, and this one will see the company layoff about 5% of its employees by the end of the year.
Take-Two is acquiring Borderlands maker Gearbox from Embracer for $460M
28.03.2024 - 09:49 / videogameschronicle.com / Randy Pitchford / Lars Wingefors / Strauss Zelnick / Jordan Middler
Embracer Group has announced that it has sold Borderlands developer Gearbox Entertainment to Take-Two Interactive.
The sale, which amounts to $460M, will see Gearbox become wholly owned by Take-Two, which already had an ongoing relationship with the developer through the Borderlands franchise.
”As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment,” said Randy Pitchford, founder and CEO of Gearbox Entertainment.
“My primary interest is always Gearbox, especially our talent and our customers. 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.”
The deal will see Take-Two gain the rights to the Borderlands and Tiny Tina’s Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem. Studios included in the deal are Gearbox Software, Gearbox Montreal and Gearbox Studio Quebec.
Reuters first reported back in September thatEmbracer was considering selling off Gearbox, with sources claiming that third parties had expressed interest in buying it.
Later that month, Take-Two CEO Strauss Zelnick refused to be drawn on whether it would be interested in acquiring Gearbox, given its long-term publishing deal with Gearbox for the Borderlands franchise and other titles.
Embracer has been carrying out a widespread money-saving operation, announcing in June 2023 that it was implementing a restructuring plan which would involve the closure of studios and the cancellation of projects.
“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,” said Lars Wingefors, co-founder and CEO of Embracer.
“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.”
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