In a surprise move, Embracer Group announced the sale of Gearbox Entertainment, known for the popular Borderlands series, to Take-Two Interactive for US$460 million. This sale comes just over three years after Gearbox was originally purchased by Embracer for approximately $1.3 billion. The deal includes the transfer of Gearbox’s development studios in Austin, Texas, and Quebec, Montreal, along with franchise rights to Borderlands, Tiny Tina, Homeworld, Risk of Rain and Duke Nukem. However, Embracer Group will retain Gearbox’s publishing arm, which includes titles such as Remnant 2 and the upcoming Hyper Light Breaker. Additionally, there are “other unannounced games” under Gearbox’s publishing arm, which remains the Embracer Group.
In a strategic move, Embracer also holds the rights to Neverwinter Online and Star Trek Online, both MMO titles, along with Lost Boys Interactive and Captured Dimensions. The retained studios will be integrated into other parts of the Embracer group in the near future. This decision follows Embracer’s original acquisition of Gearbox in February 2021 for approximately $1.3 billion, which included stocks and shares. Reports in September 2023 hinted at Embracer Group’s intention to sell Gearbox, attributed to the fallout from a failed $2 billion investment by outside investors.
Embracer’s recent actions include shutting down Saints Row developer Volition in September, also linked to the fallout from a failed investment. Over the course of six months last year, Embracer Group canceled 29 unannounced games and closed seven studios. Namely, one of the affected projects was the unannounced Deus Ex game that was being developed at Eidos Montreal.
