Flagging megacorp Embracer Group is now promoting off Gearbox Leisure to Take-Two for $460 million

Swedish video games behemoth Embracer Group purchased Gearbox for $1.3 billion again in 2021. Simply over three years later, Embracer Group is divesting Gearbox Leisure to 2K Video games and Rockstar mother or father firm Take-Two Leisure for $460 million. The acquisition is predicted to finalize by the tip of June.

Embracer will retain one piece of the Gearbox pie nevertheless, within the type of Gearbox Publishing San Francisco, which holds publishing rights to the Remnant collection and Hyper Gentle Breaker, along with “different notable unannounced sport releases”. The remaining arm of the enterprise will probably be renamed.

Embracer Group has been ruthlessly downsizing to remain afloat, after years of seemingly month-to-month studio and writer acquisitions. It bought off Saber Interactive final month to the tune of $247 million, and laid off round 1,400 folks in 2023. Final yr it shut Saints Row studio Volition and Sq. Enix Montreal, to call only a small handful of its huge contractions. Rumors that Gearbox was on the out began way back to September final yr.

Embracer’s current doom and gloom is in stark distinction to 2021-22: these have been the times when the corporate was making enormous acquisitions ranging Lord of the Rings by way of to a few of Sq. Enix’s former tentpole western studios, and receiving huge investments from Saudi Arabia. However following the collapse of a $2 billion deal in 2023, which prompted a right away and “complete” restructuring of the enterprise, a lot of the studios introduced below the Embracer Group umbrella have suffered to at least one extent or one other. For sure, a hell of rather a lot should have rested on that deal.

“Right this moment’s announcement marks the results of the ultimate structured divestment course of and is a vital step in reworking Embracer into the longer term with notably decrease web debt and improved free money stream,” Embracer CEO Lars Wingefors mentioned in a ready assertion. “Via the transaction, we decrease enterprise threat and enhance profitability as we transition to turning into a leaner and extra centered firm.”

Gearbox founder and Randy Pitchford had his say as effectively: “As a major long-term Embracer Group shareholder, I consider within the technique for the Embracer Group going ahead and am fully satisfied that this transaction is the absolute best state of affairs and an apparent web constructive association for Embracer Group, for Take-Two and, after all, for Gearbox Leisure. My main curiosity is all the time Gearbox, particularly our expertise and our clients. I need to personally guarantee followers of our video games that this association will be certain that the experiences we now have in growth at Gearbox would be the finest they’ll probably be.”

Two-Two CEO Strauss Zelnick additionally indicated in his personal ready assertion that these company machinations are for the larger good. Gearbox will fall below the 2K umbrella as a studio, presumably with a deal with Borderlands video games, which 2K has printed for the reason that collection began in 2009. For its $460 million, Take-Two additionally will get different Gearbox IP together with Homeworld, Danger of Rain, Brothers in Arms, and Duke Nukem.