Embracer Group has officially divested Gearbox Entertainment, selling the division to Take-Two Interactive for $460 million.
In a press release, Embracer shared that it is divesting Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and the franchises Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. Embracer will retain rights to Gearbox Publishing San Francisco (formerly Perfect World Entertainment, and which it plans to rename), the publishing rights to Remnant, Hyper Light Breaker, and other unannounced games, Cryptic Studios, Lost Boys Interactive, and Captured Dimensions. All of its retained assets will be integrated into other parts of Embracer Group. The sale is expected to close by the end of June.
Gearbox will join Take-Two’s 2K division and will continue to be led by CEO and founder Randy Pitchford. Currently, Gearbox has both a new Borderlands and a new Homeworld game in development, as well as “at least one exciting new intellectual property,” per a separate press release.
Notably, the full purchase price of $460 million will be paid to Embracer Group in Take-Two shares rather than cash. For comparison, Embracer originally purchased Gearbox for $363 million, half in cash and half in newly-issued Embracer Group shares, with an additional consideration of $1.015 billion (also partially in shares) to be paid out if Gearbox hit certain targets within six years.
Gearbox and Take-Two have had a long-standing relationship, with Take-Two serving as the publisher of the Borderlands franchise via its 2K label. The two also have partnered on an upcoming Borderlands film, as well as Gearbox’s 2016 game Battleborn.
Embracer Group has been gradually shedding a number of its many, many studios after an multi-year acquisition spree fell apart last year. Most recently, it divested Saber Interactive, and has made numerous cuts such as the closure of Saints Row developer Volition, the cancellation of an unannounced Deus Ex game, and the layoffs of over 900 staff, with more expected in the future.
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to rvalentine@ign.com.