Gearbox Entertainment was acquired by the Swedish game company Embracer Group in 2021. Recently, rumors were that it was planning to sell Gearbox as part of the restructuring plan that has seen the company cut nearly 1400 jobs and shut down studios such as Saints Row developer Volition and Square Enix Montreal, just to name a few.
It was reported yesterday that the company is divesting Gearbox to 2K Games and GTA developer Rockstar Games’ parent company Take-Two Interactive. The companies have now confirmed this and revealed that Take-Two has acquired the company for $460 million and will own almost all the franchises from the renowned developer, as well as other new projects.
Gearbox Entertainment Has Been Acquired by Take-Two
Take-Two has announced that it has entered into a “definitive agreement” with Embracer to acquire Gearbox, which will operate under its 2K Games label. The studio’s founder, Randy Pitchford, will still lead the studio as CEO and President with his management team. Take-Two will purchase the company as a “debt-free, cash-free company” with proper “net working capital.”
This news comes after it was reported that the studio’s CEO, Randy Pitchford, told the employees last month that information regarding the studio’s future will be shared soon, with one of three possibilities also including selling to someone else or going independent. The acquisition is expected to be complete by the first quarter of Take-Two’s fiscal year 2025, ending June 30, 2024.
The acquisition does not include “third-party publishing and other assets” that are non-core to the company’s business. Embracer Group will retain Gearbox Publishing San Francisco, which has the publishing rights to the Remnant franchise, Hyper Light Breaker, and other “notable unannounced game releases” that will be renamed after the acquisition.
The management of the companies has expressed their views on the acquisition, with Randy Pitchford saying that the acquisition will help the studio “ascend to our next level.” Strauss Zelnick, Chairman and CEO of Take-Two, said that the acquisition is an “exciting moment” for the company and will help strengthen its “industry-leading creative talent and portfolio of owned intellectual property.”
Take-Two Will Acquire Gearbox’s Major Portfolio
The acquisition will provide extra financial strength to the studio, and Take-Two will acquire the major intellectual property portfolio of the company, including full ownership of the popular and critically acclaimed Borderlands franchise and Tiny Tina’s Wonderlands franchise. The company will also own Homeworld, Risk of Rain, Brothers in Arms, Duke Nukem, and other future titles.
The studio currently has six main interactive entertainment projects that are in several stages of development. These current games include five sequels, which comprise two Borderlands games and two from the Homeworld franchise, and one project is speculated to be a brand-new IP.
Take-Two has also said that along with these in-development projects, there are “incremental opportunities” to invest in new projects from the studio and expand its popular franchises.
What are your thoughts as Take-Two Interactive acquires Gearbox? Let us know in the comment section.
