Take-Two announces $460 million acquisition of Gearbox

In 2020, the Embracer Group embarked on a significant investment spree, absorbing numerous gaming studios, with the most notable acquisitions being Saber Interactive and Gearbox Software. However, a shift occurred as Embracer Group faced investment challenges, leading to the sale of Saber Interactive to a private investor for $500 million, while Gearbox Software was put on the market.

Take-Two announced it has reached an agreement with Embracer Group to acquire Gearbox Software for $460 million, payable in newly issued Take-Two common stock, with the transaction expected to close by the end of June. It is understood that Gearbox Software will operate under the 2K studio banner in the future.

It’s worth noting that over three years ago, Embracer Group’s acquisition of Gearbox Software cost $1.3 billion. To sell at such a reduced price speaks volumes of their desperation. However, it’s important to note that the deal excludes “certain third-party publishing and other assets that the buyer deems superfluous to its operations.” Currently, Gearbox Software has ventured into publishing third-party games, such as “Tribes of Midgard,” “Remnant II,” and the forthcoming “Hyper Light Breaker,” though how these will be managed remains to be seen.

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