Take-Two Interactive is acquiring Gearbox from Embracer, and the studio has acknowledged the existence of another Borderlands game.
After being bought by Embracer Group in 2021, Borderlands creator Gearbox is officially parting ways with the media company.
Embracer, who recently sold Saber Interactive to reduce debt following a series of acquisitions, has now announced the sale of Gearbox to Take-Two Interactive for $460 million (£365 million). The deal is set to be finalized in the first quarter of Take-Two’s 2025 fiscal year, ending on June 30, 2024.
The deal means Take-Two now owns Gearbox’s IP, including Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk Of Rain, Brothers In Arms, Duke Nukem, and all future projects from the studio. Gearbox is based across three offices. US and Canada.
Gearbox has had a long-standing relationship with Take-Two, as the company’s subsidiary 2K is the publisher for Borderlands.
Gearbox CEO Randy Pitchford stated, ‘Joining forces with Take-Two Interactive and 2K will help Gearbox reach our next level. Take-Two and 2K have consistently shown their commitment to our ability to create, bring joy, and generate profit.
‘We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together as partners. I’m incredibly excited about what we can accomplish now that we’re fully aligned as one.’
According to Take-Two, Gearbox is working on six projects at various stages of development. These include five sequels, new installments in the Borderlands and Homeworld franchises, and ‘at least’ one new IP.
In the same press release, Gearbox is actively developing the next Borderlands game. Although this may not be surprising to those who have been following the various leaks, it’s the first time the studio has officially admitted the existence of a new entry.
Pitchford previously teased what’s widely assumed to be Borderlands 4, describing it as ‘the greatest thing we’ve ever done’. It’s unclear when the sequel will be released but, with the Borderlands movie out in August, it’s expected some sort of announcement could happen soon.
Embracer’s decision to sell Gearbox is part of the company’s ‘restructuring programme’, which included laying off 8% of its total workforce. The company’s cutbacks have led to the closure of various studios, including Saints Row developer Volition and Free Radical Design.
‘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 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.’
