Embracer Group might divest another of its operative groups as part of its cost-cutting restructuring. It has been reported that Gearbox Entertainment, best known for the Borderlands series, is close to being sold out.
Borderlands 2
According to Kotaku, Gearbox CEO and co-founder Randy Pitchford informed employees during a town hall that:
- A decision has been made regarding the studio’s future;
- More details will be shared next month (Embracer Group’s fiscal year also ends on March 31).
The information came from two sources familiar with the matter. Pitchford also previously told staff that Gearbox would eventually either stay with Embracer Group, buy itself out of the holding company and become independent again, or be sold to someone else.
It appears that the third option has been chosen, with Kotaku saying that a “deal is in the late stages of being finalized.”
Reports about the potential sale of Gearbox first appeared last September, with Reuters claiming that Embracer Group was working with Goldman Sachs and Aream & Co to explore a divestment. It was also said that the Swedish holding company received “interest from third parties,” but other details remained undisclosed.
Shortly after, Gearbox chief communications officer Dan Hewitt told staff in an email that the best case scenario for the studio would be to remain a part of Embracer, adding that “there are many options under consideration, including Gearbox’s transfer, taking Gearbox indepdendent, and others.”
Pitchford responded to Kotaku’s request for comment, but didn’t provide any clear details about the studio’s future. “I’m delighted that what we might be up to is interesting enough to people that you want to make a story about us for your readers,” he said. “I’m honored and humbled that our company is a topic of rumor, speculation, and discussion. As always, we will be thrilled to share whenever we have projects to announce or news to share as we work hard towards our mission to entertain the world.”
Embracer Group acquired Gearbox Entertainment for $1.38 billion in 2021 as part of its massive shopping spree. Since then, the studio has absorbed several other subsidiaries, including Perfect World Entertainment, Lost Boys Interactive, and Volition. The latter was shut down by Embracer last year as part of an ongoing restructuring program.
Gearbox is currently one of the 12 operative groups under the Swedish holding company, alongside the likes of THQ Nordic, Coffee Stain, Crystal Dynamics/Eidos Montreal, and Saber Interactive. The latter will reportedly be sold for $500 million.