Gearbox Entertainment is no longer an Embracer studio. The Swedish conglomerate confirmed the deal to sell the main part of Gearbox to Take-Two Interactive.
“On March 28, 2024, Embracer Group AB (“Embracer”) entered into an agreement to sell Gearbox Entertainment to Take-Two Interactive Software, Inc. All terms of the deal have now been met and the deal is closed today.” – said in a short press release.
The closing of the transaction resulted in Embracer issuing 8.32 million B shares at a subscription price of SEK 98.78 per share to satisfy certain earnings obligations related to the transaction. An additional 2.08 million B shares were issued at a subscription price of SEK 79.30 to cover the earnings obligations related to Lost Boys Interactive.
Embracer purchased a gearbox in 2021 for an initial $363 million, but said the resulting deal could be worth more than $1.3 billion. About three years later, the company decided to divest the studio in a deal worth $460 million.
Announcing the deal in March 2024, Embracer explained that Take-Two would acquire studios including Gearbox Software, Gearbox Montreal and Gearbox Studio Quebec, as well as well-known franchises such as Borderlands, Homeworld, Risk of Rain, Brothers in Arms, Tiny Tina’s Wonderlands and Duke Nukem.
Embracer retained ownership of what was now Gearbox Publishing San Francisco renamed Arc Gamesand publishing rights Remainders, Hyper Light Breaker, and other “notable” unannounced titles. He also remains the owner of Lost Boys Interactive, Captured Dimensions and Cryptic Studios.
The gearbox was sold with Embracer is trying to cut costs after a spending spree that saw him acquire numerous studios and franchises. This restructuring plan was announced last year and resulted in Embracer closing studios, shedding others, canceling projects and carry out mass layoffs.