Embracer Group Unsponsored ADR (OTCMKTS: EBCRY) announced the divestment this week of Gearbox Entertainment to Take-Two Interactive Software Inc (NASDAQ: TTWO) for $460 million in a deal expected to be finalized by the end of June.
This deal includes Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec and several franchises like Borderlands and Duke Nukem. According to the press release, Embracer will retain some assets such as Gearbox Publishing San Francisco, Cryptic Studios, Lost Boys Interactive and Captured Dimensions, integrating them elsewhere within the company.
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Under Take-Two's 2K division, Gearbox will continue to operate under CEO Randy Pitchford. The studio is developing new installments for Borderlands and Homeworld, along with an undisclosed intellectual property.
Interestingly, the acquisition will be settled in Take-Two shares rather than cash. Embracer originally bought Gearbox for $363 million, with additional payments contingent on hitting specific targets.
Gearbox's partnership with Take-Two extends back years, notably with the Borderlands franchise. The two companies collaborated on projects like the Borderlands film and the game Battleborn.
Embracer Group's divestment of Gearbox follows a series of strategic shifts, including the recent sale of Saber Interactive. The company has undergone significant restructuring, marked by closures like Saints Row developer Volition and the cancellation of an unannounced Deus Ex game.
These moves come after Embracer's extensive acquisition streak faced setbacks in the previous year, including layoffs affecting over 900 employees, with further restructuring anticipated.
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