Take-Two Interactive Acquires Gearbox, Teases New Borderlands Adventure

In a bold move that’s set the gaming world abuzz, Take-Two Interactive has officially announced its acquisition of Gearbox Entertainment from Embracer Group for a staggering $460 million. This deal not only signifies a major shift in the gaming industry landscape but also confirms the exciting development of a new Borderlands game, much to the delight of fans worldwide.

Embracer Group, in a detailed press release, revealed that it is divesting multiple divisions, including Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and several high-profile franchises such as Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. However, Embracer will retain several assets including Gearbox Publishing San Francisco (formerly Perfect World Entertainment), the publishing rights to Remnant, Hyper Light Breaker, and other unannounced games, as well as Cryptic Studios, Lost Boys Interactive, and Captured Dimensions.

The transaction is expected to be finalized by the end of June, with Gearbox set to become part of Take-Two’s 2K division. Randy Pitchford, the CEO and founder of Gearbox, will continue to lead the company, which is currently developing a new Borderlands game, a new Homeworld game, and at least one new intellectual property.

The payment for the acquisition will be made entirely in Take-Two shares, a departure from the cash-and-shares mix that characterized Embracer’s original purchase of Gearbox. Embracer had acquired Gearbox for $363 million, with the potential for an additional $1.015 billion payout if certain performance targets were met within six years.

The relationship between Gearbox and Take-Two is a storied one, with Take-Two having published the Borderlands series through its 2K label. They have also collaborated on the upcoming Borderlands film and Gearbox’s 2016 game Battleborn.

Embracer Group has been in the process of divesting several of its studios after a period of aggressive acquisitions. This has included the divestment of Saber Interactive and significant cuts across the board, including the closure of Saints Row developer Volition, the cancellation of an unannounced Deus Ex game, and layoffs affecting over 900 staff.

Gearbox Software, based in Frisco, Texas, has been a prominent name in the gaming industry since its inception in February 1999. Known for creating expansions for Valve’s Half-Life and developing the successful Brothers in Arms and Borderlands series, Gearbox has expanded its reach into publishing and even television and film productions.

With the acquisition by Take-Two Interactive, Gearbox is poised to continue its legacy of creating engaging and successful gaming experiences. The new Borderlands game, in particular, is highly anticipated, promising to add another chapter to the beloved franchise. As the gaming community eagerly awaits further details, this acquisition marks a significant moment in the industry, showcasing the ever-evolving nature of game development and publishing.