Embracer Group Gearbox Entertainment

Gearbox Entertainment Picked Up By Take-Two Interactive

The Embracer Implosion continues

Embracer Group divested Gearbox Entertainment to Take-Two Interactive for $460 million.

The deal helps Embracer consolidate its debt as it continues to sell off the studios it picked up over the last several years. In 2021, Gearbox was merged into Embracer for $1.3 billion.

Part of the deal stipulates that Embracer “retains selected companies,” which a press release says includes Gearbox Publisher San Francisco. The company will be renamed alongside  publishing rights to the Remnant franchise, Hyper Light Breaker, and “notable unannounced game releases.”

“Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company,” says Lars Wingefors, CEO of Embracer. “After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two.”

Gearbox Entertainment retains Gearbox Software, Gearbox Montreal, and Gearbox Studio Quebec alongside Borderlands and Tiny Tina’s Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem.

Embracer keeps Lost Boys Interactive, Captured Dimensions, and Cryptic Studios, including the MMOs Neverwinter Online and Star Trek Online, Gearbox Publishing San Francisco, Remnant, and Hyper Light Breaker.

The transaction is expected to close in Q1 FY 2024/25 and is conditional upon customary conditions, including regulatory approvals such as merger control clearance.