Gearbox Publishing stays at Embracer.
Take-Two Interactive has purchased Gearbox Entertainment from Embracer Group, in a deal worth $460 million USD.
Take-Two now owns Gearbox and a range of IP including Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, and even Duke Nukem. The deal also includes studios like Gearbox Montreal and Gearbox Studio Quebec.
Embracer Group will retain Gearbox Publishing, meaning Gearbox Publishing San Francisco and Cryptic Studios, the latter responsible for Star Trek Online and Neverwinter Online, remain with the company. Embracer also keeps Lost Boys Interactive and Captured Dimensions.
“The retained companies will be welcomed and integrated into other parts of Embracer Group in the coming period,” the company said in a press release. “All companies are expected to contribute with a positive cash flow going forward.”
“Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise,” said Strauss Zelnick, Chairman and CEO of Take-Two. “This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.”
“Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level,” added Randy Pitchford, Founder and CEO of Gearbox Entertainment. “Take-Two and 2K have demonstrated repeatedly their commitment to our engine of generating creativity, happiness, and profit. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm’s length as partners. I’m incredibly excited about what we can accomplish now that we’re fully aligned as one.”
“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,” said Embracer CEO Lars Wingefors. “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.”
“Randy and the team have been great team members throughout the past years, and I would like to thank them all for that,” Wingefors continued. “As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two.”
Rumours of Gearbox’s sale kicked up earlier this month.
Embracer purchased Gearbox three years ago, in a deal worth up to $1.3 billion.
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