Gearbox, the developer of the critically-acclaimed Borderlands series has been acquired by Take-Two Interactive from Embracer Group for $460 Million. Previously, Embracer Group acquired Gearbox for $1.3 Billion in February 2021.

This is the latest addition to the restructing saga that Embracer Group has been undergoing since a $2 billion investment deal failed to materialize from the Savvy Games Group. Last year the company laid off 904 employees and cancelled at least 15 projects, with more layoffs and a cancelled Deus Ex game happening earlier this year. The deal, however, does not include the publishing side of Gearbox, which has the rights to Remnant 2 and the upcoming Hyper Light Breaker.

Borderlands, the looter shooter series, has been published by 2K and Take-Two Interactive previously, so it only makes sense that the publisher would pick up the Gearbox. Additionally, Gearbox has confirmed that the next installment of the Borderlands series is currently in production. Check out the press release down below. 

Divested Assets

  • Gearbox Software
  • Gearbox Montréal
  • Gearbox Studio Quebec
  • Borderlands and Tiny Tina’s Wonderlands franchises
  • Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem

Retained Assets

  • Gearbox Publishing San Francisco (Formerly Perfect World Entertainment)
    • Remnant
    • Hyper Light Breaker
    • Other notable unannounced games
  • Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online.
  • Lost Boys Interactive
  • Captured Dimensions

Press Release

Quote From Take-Two Interactive

Transaction valued at $460 million; expected to close in the first quarter of Take-Two’s Fiscal Year 2025

Expands 2K’s internal development team with proven industry-leading talent

Gearbox and 2K in active development on next installment in Borderlands series

NEW YORK–(BUSINESS WIRE)–Mar. 27, 2024– Take-Two Interactive Software, Inc. (NASDAQ:TTWO), one of the largest interactive entertainment companies in the world, announced that it has entered into a definitive agreement with Embracer Group to acquire The Gearbox Entertainment Company, an award-winning creator of industry-defining entertainment experiences, for $460 million. The consideration consists entirely of newly issued shares of Take-Two common stock. The number of Take-Two shares will be calculated by dividing the purchase price by the average closing price per share on the Nasdaq Global Select Market during the five trading day period ending on the trading day immediately prior to the closing date. The purchase price assumes a debt-free, cash-free company with a normalized level of net working capital (excluding cash) at the time of the closing of the acquisition. The acquisition is anticipated to be completed during the first quarter of Take-Two’s Fiscal Year 2025 (ended June 30, 2024), and is subject to the satisfaction of customary closing conditions, including applicable regulatory approvals. The transaction excludes certain third-party publishing and other assets that Take-Two deemed non-core to its business.

Take-Two expects the transaction to deepen its successful relationship with Gearbox Entertainment and to provide increased financial benefits through a fully-integrated operational structure. Take-Two will acquire Gearbox’s extensive portfolio of intellectual property, including full ownership of the critically and commercially acclaimed Borderlands and Tiny Tina’s Wonderlands franchises1, as well as Homeworld, Risk of Rain, Brothers in Arms, Duke Nukem, and Gearbox’s future pipeline. Gearbox currently has six key interactive entertainment projects in various stages of development, including five sequels, two of which are from the Borderlands and Homeworld franchises, and at least one exciting new intellectual property. Beyond these plans, Take-Two believes that there are incremental opportunities to invest in new projects and to expand Gearbox’s proven franchises.

Management Comments

“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,” said Strauss Zelnick, Chairman and CEO of Take-Two. “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.”

“With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling,” added David Ismailer, President of 2K. “We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues. We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series.”

“Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level,” said Randy Pitchford, Founder and CEO of Gearbox Entertainment. “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."

Future Gearbox Operating Structure

Gearbox will operate as a studio within 2K and will be led by Founder and CEO, Randy Pitchford, and his management team. The acquisition adds a robust and proven development team to 2K's incredibly talented developer community, including personnel that have worked together on multiple critically and commercially successful games. Gearbox operates studios in Frisco, Texas; Montreal, Canada; and Quebec City, Canada.