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Take-Two Clinches Gearbox Acquisition for $460M from Embracer

Mar 28, 2024 1 min read

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Take-Two Interactive Software, Inc. has entered into an agreement to acquire Gearbox Entertainment, the developer behind the successful Borderlands franchise, for $460 million in stock. The deal is expected to close by the end of June 2024, coinciding with the end of the first quarter of Take-Two’s fiscal year 2025. Gearbox, which will operate under Take-Two's 2K publishing label, will continue to be led by its founder and CEO Randy Pitchford.

The acquisition is part of Take-Two's strategy to expand its game development capabilities and strengthen its portfolio with Gearbox's intellectual properties, which include Borderlands, Homeworld, Brothers in Arms, Risk of Rain, Duke Nukem, and Tiny Tina's Wonderlands. Gearbox was previously acquired by the Swedish gaming group Embracer in a deal valued at up to $1.4 billion in 2021, but Embracer has decided to divest the subsidiary, which is expected to reduce its net debt significantly.

Take-Two, known for publishing titles such as NBA 2K and owning Rockstar Games, looks to boost its financials with the integration of Gearbox's creative team and franchises. The acquisition also expands Take-Two's studio presence with locations in Frisco, Texas, Montreal, and Quebec City. The deal comes after Take-Two's earlier acquisition of mobile game developer Zynga for $12.7 billion and amid ongoing transformations in the gaming industry, including Embracer's recent restructuring program aimed at shifting from investment mode to a more cash-flow oriented business model.

#gaming #economy

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