One of the Embracer Group’s biggest names the company acquired has a new home, as Take-Two Interactive, parent company of Rockstar Games, 2K Games and more, is acquiring Gearbox Entertainment for the sum of $460 million.

The acquisition is expected to be completed during the first quarter of Take-Two’s Fiscal Year 2025 (ended June 30, 2024). Once completed, Gearbox will fall under the 2K Games label of Take-Two, which is familiar territory for the studio, as it has worked with 2K on the Borderlands franchise.

Gearbox and 2K are in active development of the next installment in the Borderlands franchise, and according to the press release, Gearbox has six currently “key interactive entertainment” projects in various stages of development, and this includes five sequels (two from the Borderlands and Homeworld franchises). and at least one new intellectual property.

This acquisition means Gearbox’s portfolio of intellectual property will now be under the ownership of Take-Two Interactive. The games and brands included in this deal are:

• Borderlands
• Tiny Tina’s Wonderlands
• Homeworld
• Risk of Rain
• Brothers in Arms
• Duke Nukem

This also includes Gearbox’s future pipeline as well.

Here are more info regarding the deal via the press release:

“Take-Two Interactive Software, Inc. (NASDAQ:TTWO), one of the largest interactive entertainment companies in the world, announced that it has entered into a definitive agreement with Embracer Group to acquire The Gearbox Entertainment Company, an award-winning creator of industry-defining entertainment experiences, for $460 million. The consideration consists entirely of newly issued shares of Take-Two common stock. The number of Take-Two shares will be calculated by dividing the purchase price by the average closing price per share on the Nasdaq Global Select Market during the five trading day period ending on the trading day immediately prior to the closing date. The purchase price assumes a debt-free, cash-free company with a normalized level of net working capital (excluding cash) at the time of the closing of the acquisition. The acquisition is anticipated to be completed during the first quarter of Take-Two’s Fiscal Year 2025 (ended June 30, 2024), and is subject to the satisfaction of customary closing conditions, including applicable regulatory approvals. The transaction excludes certain third-party publishing and other assets that Take-Two deemed non-core to its business.”

Management Comments

“Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise,” said Strauss Zelnick, Chairman and CEO of Take-Two. “This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.”

“With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling,” added David Ismailer, President of 2K. “We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues. We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series.”

“Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level,” said Randy Pitchford, Founder and CEO of Gearbox Entertainment. “Take-Two and 2K have demonstrated repeatedly their commitment to our engine of generating creativity, happiness, and profit. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm’s length as partners. I’m incredibly excited about what we can accomplish now that we’re fully aligned as one.”

We wish Gearbox and Take-Two nothing but the best in this acquisition.

Gearbox is the second major company Embracer Group has sold off, with Saber Interactive sold to Beacon Interactive for $275 million a few weeks ago.