Source: AFP
Swedish video game group Embracer announced Thursday that it has sold Gearbox Entertainment, the developer of the popular first-person shooter franchise “Borderlands,” to U.S. company Take-Two for $460 million.
Embracer chief executive Lars Wingefors said the sale, to be completed by the end of June, was “an important step in transforming Embracer into the future with significantly lower net debt and improved free cash flow”.
The sale will reduce the company’s net debt by about $300-327 million, the group said in a statement.
Gearbox will join a Take-Two lineup that includes “Grand Theft Auto” makers Rockstar Games and 2K, the studio behind “NBA 2K.”
Embracer, which also owns the “Tomb Raider” license, acquired Gearbox in February 2021 in a deal potentially worth $1.4 billion as part of an acquisition spree that spanned several years.
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The Swedish company said it is now licensing Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec and game titles including space Western “Borderlands,” “Tiny Tina’s Wonderlands,” “Homeworld,” “Risk of Rain,” “Brothers in Arms”. and “Duke Nukem.”
Embracer will retain select companies, including Gearbox Publishing San Francisco, as well as publishing rights to the “Remnant” franchise, “Hyper Light Breaker” and other unannounced game releases.
All of its retained assets will be integrated into other Embracer Group divisions, it said.
In June 2023, the Swedish company announced a massive restructuring program that included closing studios and canceling game projects.
The restructuring program aimed to transform the company “from its current investment-heavy mode to a high cash-flow generating business,” Wingefors said when it was announced.
Earlier this month, Embracer announced it was ceasing all operations in Russia with the sale of its US-based subsidiary Saber Interactive, which controls several game development studios in Russia and Eastern Europe.
Source: AFP