Take-Two Interactive has acquired Gearbox Entertainment, a towering figure in the video game industry previously associated with Embracer Group, for an impressive sum of $460 million. The acquisition encompasses Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and a multitude of well-known franchises like Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem.
This recent deal will amplify the stature of Take-Two Interactive’s portfolio, granting them rights and control over four significant studios, which include the aforementioned Gearbox Software, Gearbox Montreal, and Gearbox Studio Quebec.
While the acquisition signifies a significant shift, Embracer Group retains several key rights and assets. This includes the rights to Gearbox Publishing San Francisco (previously known as Perfect World Entertainment), and highly-regarded games such as Remnant and Hyper Light Breaker, plus some yet-to-be-disclosed games.
The acquisition process is set to be completed by the end of June. Post acquisition, Gearbox will be integrated into Take-Two’s portfolio, aligning with 2K division, which was recently assimilated. Gearbox’s founder and CEO, Randy Pitchford, remains at the helm – a decision that cements confidence in his vision and leadership capacities.
Take-Two’s strategic Gearbox acquisition overview
Amid the internal restructuring, Gearbox Entertainment harbors plans to develop fresh iterations of games. Key among these are the popular Borderlands and Homeworld franchises. Also, there’s a rumored development of a new original property.
In an interesting twist of the deal, the acquisition value of $460 million will not be paid in cash. Embracer Group will instead be compensated with equivalent Take-Two shares. This is a stark departure from Embracer’s initial purchase of Gearbox, which amounted to $363 million, paid in cash.
Take-Two and Gearbox share a history of fruitful partnership, exemplified through joint successes like the Borderlands series and the 2016 Battleborn project. However, the recent offloading of some studios by Embrancer Group could hint at a strategic pivot in the company’s approach to its gaming business.
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