Take-Two Interactive, the current owner of Rockstar Games and 2K, has officially purchased Borderlands studio Gearbox Entertainment for a total of USD $460 million. Gearbox was formerly owned by Embracer Group, which has been on a roll of divestiture over the last few months.
The news of Gearbox’s transference was shared in a press release confirming the move, and detailing what exactly will go with Gearbox. As outlined, Embracer Group will retain Gearbox Publishing San Francisco (Remnant 2, Have a Nice Death) including the publishing rights to the Remnant franchise, the upcoming game Hyper Light Breaker, and other unannounced games.
It will also retain Gearbox’s Cryptic Studios, Lost Boys Interactive, and Captured Dimensions.
Take-Two has purchased Gearbox Software (Frisco, Texas), Gearbox Montréal, Gearbox Studio Quebec, the Borderlands and Tiny Tina’s Wonderlands franchises, and the Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem franchises.
Read: Borderlands 4 and Tiny Tina’s Wonderlands 2 seemingly leaked
According to Embracer Group, the transfer will allow it to “significantly reduce net debt, earnout obligations and capex [capital expenditures].” Already, the company has divested studios including Saber Interactive, and has closed others, in the effort to reduce its debt from a period of over-investment.
“Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow,” Lars Wingefors, co-founder and CEO of Embracer Group said.
“Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders.”
For his part, Randy Pitchford, founder and CEO of Gearbox Entertainment was enthusiastic about the deal, calling it the “best possible scenario” for Embracer Group, Take-Two, and Gearbox Entertainment.
“My primary interest is always Gearbox, especially our talent and our customers,” Pitchford said. “I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be.”
In a seperate press release, Gearbox confirmed it has a number of anticipated projects still in development, presumably now with Take-Two: “Gearbox currently has six key interactive entertainment projects in various stages of development, including five sequels, two of which are from the Borderlands and Homeworld franchises, and at least one exciting new intellectual property.”
The finalisation of Take-Two’s purchase will be completed in Q1 FY 2024/25, as long as merger clearance is obtained from regulatory bodies. On 28 March 2024 PT/ET, Embracer Group will hold a webcast presentation for shareholders, media, and other stakeholders, to detail the incoming changes, and what they will mean for all involved.
