Embracer Group Officially Selling Borderlands Developer Gearbox to Take-Two

The long-rumored sale of Gearbox Entertainment is now confirmed to be in the works. On Tuesday night, Embracer Group announced that it will sell Gearbox to Take-Two Interactive Software, Inc., for a consideration of $460 million. This deal will reportedly include Gearbox Software's Frisco, Texas headquarters, as well as the company's Montréal and Quebec studios. It will also span a number of Gearbox's established franchises, including Borderlands and Tiny Tina's Wonderlands, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem.

Embracer Group will be keeping some assets in the sale, including Gearbox Publishing San Francisco, which will be renamed prior to the closing of the deal, as well as their publishing rights for Remnant, Hyper Light Breaker, and more. It will also include Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online, Lost Boys Interactive, and Captured Dimensions.

"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," Lars Wingefors, co-founder and CEO of Embracer, said in a statement. "Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. 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." 

"As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment," Randy Pitchford, founder and CEO of Gearbox Entertainment, echoed. "My primary interest is always Gearbox, including our talent and our customers. I want to personally ensure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best it can possibly be."

This deal between Embracer and Take-Two has been rumored to be in the works since the fall of 2023, amid restructuring and financial cuts at the former studio. 

"We've had a long-term relationship with Gearbox of which we're very proud. They're a wonderful company, they've delivered for us—not just Borderlands, but also Tiny Tina's Wonderlands and other titles—and I've no doubt they'll continue to be successful in the future," Take-Two CEO Strauss Zelnick said at the time. "We're thrilled that we have a long-term publishing relationship on these titles. That publishing relationship exists without regard to the ultimate owner of Gearbox. But with regard to our potential interest, we don't tend to speculate on potential transactions."

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