In a surprising move, Embracer Group has announced the sale of Gearbox Entertainment, known for the popular Borderlands series, to Take-Two Interactive for $460 million USD. This sale comes just over three years after Embracer initially acquired Gearbox for roughly $1.3 billion. The deal includes the transfer of Gearbox’s development studios in Austin, Texas, and Quebec, Montreal, along with the 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 like Remnant 2 and the upcoming Hyper Light Breaker. Additionally, there are “other unannounced games” under Gearbox’s publishing arm that remain with Embracer Group.
In a strategic move, Embracer is also holding onto the rights for 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 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 from September 2023 hinted at Embracer Group’s intention to sell Gearbox, attributed to the fallout from a failed $2 billion investment from outside investors.
Embracer’s recent actions include the closure of Saints Row developer Volition in September, also linked to the fallout from the failed investment. Over the course of six months last year, Embracer Group canceled 29 unannounced games and shut down seven studios. Notably, one of the affected projects was an unannounced Deus Ex game under development at Eidos Montreal.
What a freaking loss 😖😖😖 1.3BILLION!!
Out of the frying pan and into the fire for Gearbox…
embracer group nearly ruined borderlands. glad it is back in good hands.
Embracing is clearly a plague. They buy at all costs only to close/lay off or resell… Worse than Microsoft
That company has jumped into something it doesn’t really understand, and now has turned from something that was to become a juggernaut of a game publisher, to just straight out going back to old school business behaviour because they’re panicking. Capitalism in this pure form is just the worst.