Take-Two acquires Borderlands developer Gearbox Entertainment from the Embracer Group for $460M in stock; the deal is expected to close by the end of June 2024

A new Homeworld game is also in development. — Embracer Group has officially divested Gearbox Entertainment …

IGN 2024-03-29 Rebekah Valentine

Context & Ripple Effects

Embracer had been reported to be exploring options for Gearbox while seeking to strengthen its finances. The completed sale turns that possibility into a defined transfer of a major studio and its flagship franchise relationship.

The divestment follows a period in which Embracer had assembled an unusually broad studio portfolio, described in earlier coverage as 132 studios overseeing 237 games. It matters as a concrete reversal of that acquisition-led expansion.

First-order effects

Take-Two gains Gearbox Entertainment for $460M in stock, bringing the Borderlands developer under its corporate structure once the transaction closes.
Embracer receives Take-Two stock and removes Gearbox from its studio portfolio, while Gearbox's ongoing development work, including Homeworld, continues under a new owner.

Second-order effects

The transaction gives Take-Two a more direct organizational stake in a developer tied to Borderlands, potentially tightening coordination around the franchise's future releases and support.
For Embracer, a completed sale provides a model for further portfolio decisions: studios can be separated from the group rather than managed within its previously expansive network.

Third-order effects

If comparable divestments continue, games-industry consolidation may become less about building the largest studio count and more about owners concentrating capital on fewer franchises and teams they can support directly.
The result could be a more polarized market, with large publishers acquiring proven developers while diversified holding groups face pressure to show that scale translates into sustainable operations.

The trend: This is one data point in a shift from rapid studio roll-ups toward portfolio rationalization and franchise-focused ownership in games.

Discussion

@gearboxofficial @gearboxofficial on x
We're incredibly proud to announce we're joining the Take-Two Interactive/@2K family. [image]
@malliefe2o3 Mallie Rust on x
Got the news today that Gearbox Publishing is not included in the deal with Take 2. I'm laid off, along with the majority of our teams. To say I'm devastated is an understatement. It's hard to lose both a job and team that I loved so much.
@wario64 @wario64 on x
no surprise but Borderlands 4 is in active development https://www.businesswire.com/ ... [image]
@thatsamwinkler Sam Winkler on x
With the new purchase, Gearbox is losing some incredible talent, especially in our publishing and comms arms. I'll be spending the day amplifying them, and I ask that you do the same! If anyone has any positions open that match their skills, I am happy to be a reference.
@dmc_ryan Ryan McCaffrey on x
I'm guessing a lot of people thought 2K already owned Gearbox. But no, they were independent (until Embracer) & 2K had “dibs” on all Borderlands games. Selfishly I'd love Brothers in Arms to come back, but realistically it's gonna be LOTS more Borderlands https://www.ign.com/...
@moxsyog @moxsyog on x
Gearbox getting out from underneath Embracer is a very good thing imo. However getting separated from Remnant & Hyper Light Breaker is a bit of a bummer. I'm already seeing layoffs hitting the timeline from this. Wishing everyone the best over there.
@kerrblimey Chris Kerr on x
One thing that I haven't seen noted yet: Take-Two just spent $460M on Gearbox weeks after announcing a “cost reduction program” and while its seemingly laying off workers within 2K. I previously asked Take-Two for comment on those layoffs, but the company never replied. [image]
@colinmcummings Colin Cummings on x
The people at Gearbox Publishing (Frisco) are some of the best people I've ever worked with in this industry. The brand managers, the PR folks, and the social folks are all incredible talent, and I hope they find a new spot soon. 💛
@ethangach @ethangach on x
NEW: A Gearbox spokesperson confirms layoffs at the company today as a result of Embracer's ongoing cuts but wouldn't say how many are impacted. “We are grateful that our talent and capability are of interest to you and your audience.” https://kotaku.com/... [image]
@embracergroup @embracergroup on x
Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc. Join us live online for the webcast: 📅 Thursday, March 28 🕘 09:00 CET 📺 https://ir.financialhearings.com/ ... https://embracer.com/...
@kerrblimey Chris Kerr on x
It will be retaining: -Gearbox Publishing San Francisco, including the publishing rights to the Remnant franchise, Hyper Light Breaker and other unannounced titles -Cryptic Studios, including Neverwinter Online and Star Trek Online -Lost Boys Interactive -Captured Dimensions
@kerrblimey Chris Kerr on x
BREAKING: Embracer just sold key Gearbox Entertainment assets to Take-Two Interactive for $460 million. The divested assets include: -Gearbox Software -Gearbox Montréal -Gearbox Studio Quebec -Franchises including Borderlands, Tiny Tina's Wonderlands, Risk of Rain, and more [imag…
@wario64 @wario64 on x
Embracer Group Divests Gearbox Entertainment For A Consideration Of USD 460 Million To Take-two Interactive Software, Inc. Take-Two will get Borderlands and Tiny Tina's Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem Embracer retains...…
@dippizuka Alex Walker on x
how to become a millionaire 👉start as a billionaire 🛫buy gearbox for $1.3 billion 🚀sell it at an ~$840 million loss two years later
@2k @2k on x
Welcome to the family ‼️ @GearboxOfficial
@grummz @grummz on x
Embracer continues to dump assets. This price is lower than I expected for Gearbox.
@slomobackslap @slomobackslap on x
Figured this would be the case for a while. Take Two had a big interest in making sure Gearbox is stable considering they have indefinite publishing rights to Borderlands IP.
@joltzdude139 @joltzdude139 on x
Happy noises
@ccrypto5 @ccrypto5 on x
We got the good ending gang
@timleftwich Tim Leftwich on x
Yeah, a 2am post on a Wednesday really projects pride. 🙄
@gothalion @gothalion on x
I suppose this is likely one of the cleanest outcomes for Gearbox as they have a long history with Take2. Here's hoping everyone can retain their positions and they can focus in on making games
@imranzomg Imran Khan on x
Embracer bought them for nearly a billy and a half. Amazing.
@floppyadult John E Warren on x
Buy high sell low!!!! Masters of the craft!
@expayline @expayline on x
Money is completely fake because how do you erase 1 billion in value in the time since you bought Gearbox
@deantak Dean Takahashi on x
It's called escape from Embracer. $460 million price paid in 2024; $1.3 billion in 2021. Take-Two to acquire Gearbox from Embracer https://venturebeat.com/... via @VentureBeat
@stephentotilo Stephen Totilo on x
While Embracer's purchase of Gearbox was widely reported as a $1 billion deal, it was never that simple. Lots of strings attached, as you can see in the release at the time https://embracer.com/... [image]
@stephentotilo Stephen Totilo on x
Re: Embracer paying $1.3b for Gearbox vs selling it for $460m Not quite In 2021, Embracer paid $363m for G., half in E's stock. $1b more tied to targets over 6 years Embracer now sells G. for $460m, T2 pays in new stock. Embracer, post fees/stock sales, expects $300-330m cash
@shannon_liao Shannon Liao on x
Take-Two just bought Borderlands Developer Gearbox for $460 million, in a deal expected to close next year. Take-Two says it won't comment beyond a press release.
@stephentotilo Stephen Totilo on x
BREAKING: “Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc.”
@stephentotilo Stephen Totilo on x
Take Two gets Borderlands, Tiny Tina's, Homeworld, and more. Embracer keeps Cryptic, Lost Boys Interactive and more. Listed below [image]
r/gaming r on reddit
Take-Two Buys Gearbox From Embracer, Confirms Development on New Borderlands Game - IGN
r/dukenukem r on reddit
Take-Two Interactive Software, Inc. to Acquire The Gearbox Entertainment Company Inc...
r/gigantic r on reddit
Gearbox to leave Embracer, joins Take 2. I hope this won't affect Gigantic release negatively.
r/borderlands3 r on reddit
Borderlands 4 is officially in active development
r/homeworld r on reddit
Most of Gearbox (including Homeworld) sold to Take-Two Interactive.
r/kindafunny r on reddit
Take-Two is acquiring Gearbox Software from Embracer for $460 million
r/XboxSeriesX r on reddit
Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc.
r/PS5 r on reddit
Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc.
r/gaming r on reddit
Gearbox to leave Embracer, join Take2
r/Games r on reddit
Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc.

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