Embracer Group to Sell Parts of Gearbox Entertainment to Take-Two Interactive

Brief: Embracer Group has today entered into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. (“Take-Two”). ... Closing is expected in Q1 FY 24/25, ending June 2024. ... [T]he expected net cash proceeds amount to approximately USD 300-330 million (SEK 3.2-3.5 billion).

The divested assets include [sold to Take-Two]:

• Gearbox Software (Frisco, Texas)
• Gearbox Montréal
• Gearbox Studio Quebec
• Borderlands and Tiny Tina’s Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem. [Take-Two will therefore have the full ownership of the Borderlands intellectual property with their 2K subsidiary being the game's publisher already.]

The retained assets include [not sold off]:

• Gearbox Publishing San Francisco (to be renamed prior to closing, formerly named Perfect World Entertainment), including the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases
• Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online.
• Lost Boys Interactive
• Captured Dimensions

The retained companies will be welcomed and integrated into other parts of Embracer Group in the coming period. All companies are expected to contribute with a positive cash flow going forward.

https://embracer.com/releases/embracer-group-divests-gearbox-entertainment-for-a-consideration-of-usd-460-million-to-take-two-interactive-software-inc/

A message from Randy Pitchford:

Joining forces with Take-Two Interactive/2K will help Gearbox ascend to our next level. Take-Two and 2K have demonstrated repeatedly their commitment to our engine of generating creativity, happiness, and profit. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm's length as partners. I'm incredibly excited about what we can accomplish now that we're fully aligned as one.

https://twitter.com/gearboxofficial/status/1773195417653506202