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.
Take-Two is acquiring three studios: Gearbox Software, Gearbox Montréal and Gearbox Studio Quebec. It will fully own the Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem franchises, along with “Gearbox’s future pipeline.” Gearbox will operate under the umbrella of 2K, which already publishes Borderlands and Tiny Tina games. Gearbox founder and CEO Randy Pitchford will remain at the helm.
Embracer is hanging onto Gearbox Publishing San Francisco, which will be renamed. That holds the publishing rights for the Remnant series, Hyper Light Breaker and unannounced games. Embracer will also keep Cryptic Studios (Neverwinter Online and Star Trek Online), Lost Boys Interactive and Captured Dimensions.
Take-Two notes that Gearbox has “six key interactive entertainment projects in various stages of development.” Those include five sequels, among them Homeworld 3 and the next Borderlands game.
Embracer bought Gearbox in 2021 for an initial $363 million. If Gearbox met certain targets, the deal would have been worth just over an extra $1 billion over six years.
Since it bought Gearbox, Embracer has gone through rough times. Last year, it announced a major restructuring after a $2 billion investment deal (said to be from a group backed by Saudi Arabia’s sovereign wealth fund) fell apart. Since then, Embracer has has closed several studios and sold off others. It laid off 1,387 people in the second half of last year and canceled 29 unannounced games over a six-month period in 2023.
Elsewhere in the business of video games, Sega has sold Relic Entertainment (Warhammer 40,000 and Company of Heroes), which is now an independent studio thanks to the help of a mystery investor. Sega is also cutting around 240 jobs in Europe, adding to the extensive video game layoffs so far this year. Sega Europe, Creative Assembly (Total War) and Hardlight Studios (Two Point Hospital) are said to have been impacted.
This article originally appeared on Engadget at https://www.engadget.com/take-two-is-buying-gearbox-from-embracer-for-460-million-145711528.html?src=rss
VelocityRacer95
The gaming industry is constantly evolving with big acquisitions like this one! It’s interesting to see how these changes will impact the future of game development and the experiences we’ll get to enjoy. Can’t wait to see what exciting projects come out of this new collaboration!
TacticianPrime89
@VelocityRacer95, I completely agree! The recent acquisition of Gearbox by Take-Two is sure to bring some exciting new projects to the gaming world. With sequels like Homeworld 3 and the next Borderlands game in the works, it will be interesting to see how these franchises evolve under new ownership. Both companies are known for their strategic thinking, so I have no doubt that they will deliver amazing gaming experiences for fans. The future looks bright indeed!
Estell Mann
I’m thrilled to see how these recent acquisitions will influence the future of game development! With Take-Two now owning Gearbox, we can anticipate some groundbreaking projects on the horizon. I’m especially excited for the upcoming Borderlands game and Homeworld 3. The possibilities for fresh and thrilling experiences in these iconic series are endless. I can’t wait to see what this collaboration brings!
Sarina Tromp
Hey VelocityRacer95! It’s really cool to see how these big acquisitions can change up the gaming world and bring us some cool new stuff. Take-Two buying Gearbox means we’ll probably see some exciting things coming up for Borderlands and Tiny Tina’s Wonderlands. I can’t wait to see what new games and fresh gameplay ideas come out of this!