According to an official press release from Embracer Group, Embracer Groups will divest Gearbox for $460 million. Gearbox – creators of Borderlands, Risk of Rain and more video game IPs – will be acquired by Take Two and paid entirely with newly created Take Two shares.
Speaking of products sold by Embracer, they include Gearbox Software, Gearbox Montréal, Gearbox Studio Quebec, and various IPs such as Borderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem 》. However, Embracer will continue to control Gearbox Publisher (renamed soon after the sale), Cryptic Studios (Neverwinter Online and Star Trek Online), Lost Boys Interactive and Captured Dimensions. Following the sale, the developers will be merged into Embracer.
Back in 2021, Embracer Group acquired Gearbox for $1.3 billion. The $363 million was an upfront payment, split 50/50 between cash and Embracer stock. There’s roughly $1 billion up for grabs if Gearbox hits a few goals within six years, though there’s no mention of whether Gearbox has hit those goals since the acquisition. Randy Pitchford will remain CEO of Gearbox as the company swings under the Take Two umbrella.
According to official news, these shares will all be used to repay Embracer’s current debt. The press release stated: “Today’s announcement marks the outcome of the final structural divestment process and is an important step in embracing future transformation, with significantly lower net debt and improved free cash flow. Through this transaction, we have reduced business risk and improved To improve profitability, we will transform into a leaner, more focused company.”
It’s worth noting that these stocks are likely to be profitable in the next few years, since Take Two is the publisher of a little game you may have heard of called Grand Theft Auto 6. So despite Gearbox and despite the high price tag (which is a huge number), it’s worth remembering that $460 million worth of Take Two stock should grow in the near future. Will it grow enough to match or exceed Gearbox’s initial investment? This seemed like a steep hill to climb.
Notably, Embracer found itself in really tough times, which resulted in industry-shaking layoffs that were catastrophic for the video game industry as a whole. These include (but are definitely not limited to) laying off 100 employees, canceling January’s Deux Ex game, and December’s 3D Realms.
While Embracer didn’t issue any statement beyond a press release, Randy Pitchford gave the following statement to Kotaku in February: “I’m excited about what we’ve done and for those who want to make stories It’s interesting enough for us to serve you, our readers. I’m honored and humbled that our company is a subject of rumor, speculation, and discussion. As always, as we work toward our goals, whenever we have something to announce When there’s a project or news to share, we’re all excited to share it with you. Mission to the Entertainment World.” The statement may have been a little vague, but Kotaku’s reporting has proven to be correct in the weeks since it was released.
It remains to be seen how much more Embracer can continue to bail out after a troubling financial period, but with one of its larger acquisitions coming to a close, it’s hard to imagine confidence in the company returning anytime soon . Just look at what developers recently said at the Game Developers Choice Awards!
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