Take-Two Interactive to Acquire ‘Borderlands’ Developer Gearbox From Embracer Group for $460 Million
Take-Two Interactive has acquired video game developer Gearbox, the maker of the “Borderlands” franchise, from Embracer Group for $460 million.
Per Take Two, the company “expects the transaction to deepen its successful relationship with Gearbox Entertainment and to provide increased financial benefits through a fully integrated operational structure.”
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As part of the deal, Take-Two will acquire Gearbox IP, including “Borderlands” and “Tiny Tina’s Wonderlands” franchises, games published by Take-Two’s 2K Games, as well as “Homeworld,” “Risk of Rain,” “Brothers in Arms” and “Duke Nukem.”
Currently, Gearbox has six “key interactive entertainment projects in various stages of development,” per Take-Two, which includes five sequels, two from “Borderlands” and “Homeworld” universes, and at least one “exciting new intellectual property,” all of which have been acquired in the sale.
Take-Two’s purchase of Gearbox is expected to close in June, pending regulatory approval. Upon completion, Gearbox will operate as a studio within 2K, continuing to be led by Gearbox CEO Randy Pitchford and his management team.
Former Gearbox owner Embracer, a Swedish gaming conglomerate who snapped up the rights to “Lord of the Rings” two years ago, has undergone a severe restructuring program over the past year, which has seen the company shut down or dispose of dozens of games studios and titles and lay off hundreds of staff, resulting in aftershocks that have reverberated throughout the games industry.
The sale of Gearbox marks the latest insistence of Embracer unloading assets, following the company divesting Saber Interactive.
“Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise,” Take-Two CEO Strauss Zelnick said. “This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.”
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