Take-Two Acquires Gearbox from Embracer Group in $460 Million Deal
In a significant move within the gaming industry, Swedish gaming conglomerate Embracer Group has struck a deal to sell Gearbox Interactive to Take-Two Interactive, the parent company of Rockstar Games, for a sum of $460 million. The acquisition, announced through a press release on Thursday, will see Take-Two gaining full ownership of several renowned franchises, including Borderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem, along with Gearbox’s studios located in Quebec, Montréal, and Frisco, Texas.
The deal, anticipated to be finalized by June 2024, signifies a strategic move by Take-Two to expand its portfolio and strengthen its position in the gaming market. Under the agreement, Gearbox CEO Randy Pitchford will continue to lead the development of ongoing projects, including two Borderlands titles and two Homeworld titles, under Take-Two’s 2K division.
David Ismailer, President of 2K, expressed excitement about the acquisition, welcoming Pitchford and his team to the company and expressing eagerness for future collaborations. Ismailer highlighted the successful partnership between 2K and Gearbox on the Borderlands franchise and confirmed active development on the next installment in the series.
Despite the significant acquisition, Embracer will retain certain assets, including Gearbox Publishing San Francisco (to be rebranded), Cryptic Studios, Lost Boys Interactive, the Remnant franchise, Hyper Light Breaker, and other undisclosed game releases. This strategic decision aligns with Embracer’s ongoing restructuring efforts following the fallout of a failed $2 billion deal last year, which saw the recent sale of Saber Interactive and staff layoffs at Lost Boys Interactive and Eidos Montreal.
The sale of Gearbox to Take-Two marks a substantial shift in valuation compared to Embracer’s previous assessment of the business, which valued Gearbox at $1.3 billion in 2021. The $460 million transaction underscores Embracer’s strategic realignment and reflects the evolving dynamics within the gaming industry as companies seek to optimize their portfolios and adapt to changing market conditions.
With the acquisition poised to reshape the gaming landscape, stakeholders will closely monitor the integration process and the future trajectory of Gearbox under Take-Two’s stewardship. As gaming enthusiasts anticipate new developments and projects emanating from this collaboration, the deal underscores the enduring competitiveness and dynamism of the gaming industry in the global market.
