Embracer Group is selling Gearbox to Take-Two in a $460 million deal. The deal is expected to be completed in the first quarter of the 2024-2025 fiscal year.
Embracer Group has decided to sell Gearbox Entertainment to Take-Two Interactive in a $460 million deal. This sale will enable Gearbox to transition to a new owner, and the entire cost of the deal will be paid with Take-Two shares. Company units such as Gearbox Software, Gearbox Montreal and Gearbox Studio Quebec are moving to Take-Two, along with the rights to series such as Borderlands, Risk of Rain, Brothers in Arms, Duke Nukem, Homeworld and Tiny Tina’s Wonderlands.
Details of the Agreement and Its Effects on the Future
Gearbox is currently working on new Borderlands and Homeworld games, and Gearbox Publishing San Francisco will change its name and remain under the ownership of Embracer. Embracer CEO Lars Wingefors stated that this sale is an important step for the company and will prepare Embracer for the future with less net debt and better free cash flow. The deal opens up new opportunities for Gearbox to achieve new success within Take-Two and 2K.
Gearbox CEO Randy Pitchford stated that the partnership with Take-Two and 2K is an engine that produces creativity, profit and happiness, and that they will raise the bar even further in interactive entertainment with this merger. While the deal is expected to be completed in the first quarter of the 2024-2025 fiscal year, Take-Two Chairman and CEO Strauss Zelnick said that this acquisition will strengthen Take-Two’s creative capabilities and intellectual property portfolio, including the iconic Borderlands series.