Embracer Group has been undergoing a cost-cutting initiative over the past year, leading to several studio closures and layoffs. Other major companies under the Embracer banner have instead been sold. Earlier this month we saw Saber Interactive split off from its former parent company. Now, Gearbox Entertainment has also been sold.
There were several bidders for Gearbox Entertainment when the company went up for sale a couple of years ago. Now, the company appears to be going back to its true home. Take-Two is acquiring Gearbox Entertainment, including the company’s main studios in Gearbox Software, Gearbox Montreal and Gearbox Quebec in a deal worth $460 million.
The rights to Borderlands, Tiny Tina’s Wonderlands, Risk of Rain, Brothers in Arms, Duke Nukem and Homeworld will be staying with Gearbox. Meanwhile, Embracer Group will hang on to Gearbox Publishing, which will be renamed once the deal completes. As the owner of Gearbox Publishing, Embracer Group will retain the rights to Neverwinter Online and Star Trek Online, as well as the Cryptic, Lost Boys Interactive and Captured Dimensions studios.
Embracer CEO and co-founder, Lars Wingefors, stated that this deal will aid in lowering net debt and cash flow for the company. Meanwhile, Gearbox Entertainment should have a more stable home at Take-Two, one of the most successful publishing companies in the industry.
KitGuru Says: The writing has been on the wall for a while, with Embracer previously confirming that it is considering selling off Gearbox to improve its financial situation. We wondered if that was still the case after selling off Saber Interactive. Moving forward, Gearbox will be working with Take-Two once again as a studio within the 2K family, which is fitting given past involvement in the Borderlands series.
