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Gearbox Entertainment, the developer of Borderlands, was one of the companies Embracer marked for sale as part of its restructuring program that began in June of 2023. The Swedish gaming group today announced that it has sold part of Gearbox for $460 million (SEK 4.9 billion) to Take-Two Interactive.

Embracer Has Sold Part Of Gearbox Entertainment To Take-Two Interactive For $460 Million

Embracer said the proceeds from the deal when it is closed will significantly lower its “net debt, earnout obligations, and capex”. Embracer will retain Gearbox Publishing San Francisco as well as the publishing rights to the Remnant franchise, Hyper Light Breaker, and other unannounced titles. However, Gearbox Publishing San Francisco will be renamed.

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“Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow,” said Embracer CEO and co-founder Lars Wingefors.

“Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders.


“Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two.”

The deal is expected to be closed by the end of Q1 2024/2025 financial year which will end June 2024. Embracer will be paid at closing in the form of newly issued Take-Two shares which the company plans to sell for cash proceeds after the close of the deal.

Embracer Has Sold Part Of Gearbox Entertainment To Take-Two Interactive For $460 Million

“As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment,” said Gearbox Entertainment CEO Randy Pitchford.

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“My primary interest is always Gearbox, especially our talent and our customers. I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be.”

Embracer’s divested and retained assets after the Gearbox Entertainment deal

Embracer Has Sold Part Of Gearbox Entertainment To Take-Two Interactive For $460 Million

Contrary to what some media reported, Embracer only divested part of Gearbox Entertainment and will retain a significant chunk of the company’s assets after the deal. The divested part of Gearbox Entertainment that Take-Two Interactive will now own include:

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As earlier mentioned, Embracer will hold on to the publishing arm of Gearbox which will be renamed as soon as the deal closes at the end of June. Below are all the Gearbox assets that Embracer will retain.

  • Gearbox Publishing San Francisco (to be renamed prior to closing, formerly named Perfect World Entertainment), including the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker, and other notable unannounced game releases
  • Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online.
  • Lost Boys Interactive
  • Captured Dimensions

Embracer said the retained companies will be integrated into other parts of its assets and will be “expected to contribute with a positive cash flow going forward”. Subsequently, Embracer will reduce its net debt by SEK 3.2 to 3.5 billion using the proceeds from the deal.

Emecheta Christian

Emecheta Christian is an avid gamer with over 5 years in the industry. He is also a poet. It is therefore not surprising that his post sometimes read like poetry.


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