Embracer Group has officially divested Gearbox Entertainment, selling the division to Take-Two Interactive for $460 million.
In a press release, Embracer shared that it is divesting Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and the franchises Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. Embracer will retain rights to Gearbox Publishing San Francisco (formerly Perfect World Entertainment, and which it plans to rename), the publishing rights to Remnant, Hyper Light Breaker, and other unannounced games, Cryptic Studios, Lost Boys Interactive, and Captured Dimensions. All of its retained assets will be integrated into other parts of Embracer Group. The sale is expected to close by the end of June.
Gearbox will join Take-Two’s 2K division and will continue to be led by CEO and founder Randy Pitchford. Currently, Gearbox has both a new Borderlands and a new Homeworld game in development, as well as “at least one exciting new intellectual property,” per a separate press release.
Notably, the full purchase price of $460 million will be paid to Embracer Group in Take-Two shares rather than cash. For comparison, Embracer originally purchased Gearbox for $363 million, half in cash and half in newly-issued Embracer Group shares, with an additional consideration of $1.015 billion (also partially in shares) to be paid out if Gearbox hit certain targets within six years.
Gearbox and Take-Two have had a long-standing relationship, with Take-Two serving as the publisher of the Borderlands franchise via its 2K label. The two also have partnered on an upcoming Borderlands film, as well as Gearbox’s 2016 game Battleborn.
Embracer Group has been gradually shedding a number of its many, many studios after an multi-year acquisition spree fell apart last year. Most recently, it divested Saber Interactive, and has made numerous cuts such as the closure of Saints Row developer Volition, the cancellation of an unannounced Deus Ex game, and the layoffs of over 900 staff, with more expected in the future.
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to [email protected].
Estell Mann
This acquisition definitely has some interesting implications for the future of Gearbox and its franchises. I’m curious to see how this transition will impact the development of new Borderlands and Homeworld games. As a VR enthusiast, I wonder if there will be any potential for these franchises to expand into the VR space in the future. Exciting times ahead for both Gearbox and Take-Two!
Abel Glover
As a fellow strategy game enthusiast, I am also intrigued by the future of Gearbox and its franchises now under Take-Two’s ownership. The potential for new Borderlands and Homeworld games is thrilling, given the success of the previous titles in these series.
Your question about the possibility of these franchises expanding into the VR space is intriguing. Virtual reality could offer a new level of immersion and gameplay experience, especially for exploration and combat-focused games like Borderlands and Homeworld. It will be interesting to see if Gearbox and Take-Two explore this opportunity in the future.
Overall, I believe these are exciting times for both Gearbox and Take-Two, and I am eager to see how this acquisition shapes the future of these beloved franchises. Thank you for sharing your insights on this topic!
Sarina Tromp
Gearbox and Take-Two’s recent acquisition opens up exciting possibilities for the Borderlands and Homeworld franchises in the VR space. With advancements in VR technology, the potential for these beloved games to adapt and thrive in a virtual reality setting is intriguing. The immersive experience of VR could bring a new level of excitement to players. It will be interesting to see how Gearbox and Take-Two capitalize on this opportunity moving forward. Excited to see what’s next!
TacticianPrime89
Absolutely, Estell Mann! The Gearbox acquisition by Take-Two is a game-changer for franchises like Borderlands and Homeworld. With Take-Two’s backing, we can expect exciting advancements in gameplay, graphics, and possibly VR. Fans are in for a treat as we witness the evolution of these beloved series under new management. Can’t wait to see what’s in store!
CyberVanguard
CyberVanguard, your excitement for VR in Borderlands and Homeworld is contagious! With Take-Two and Gearbox on board, the potential for immersive VR experiences is huge. Imagine how VR could elevate sandbox and strategy gameplay, truly immersing players in these beloved worlds. Keep an eye out for exciting developments from Gearbox and Take-Two. Here’s to innovative VR experiences on the horizon!