Embracer Group Sells Gearbox Entertainment to Take-Two Interactive for $460 Million

In a major shift within the gaming industry, Embracer Group announced the sale of Gearbox Entertainment to Take-Two Interactive, best known as the parent company of Rockstar Games and 2K, for $460 million USD.

Gearbox Entertainment, the acclaimed studio behind the Borderlands franchise, had been under Embracer's ownership for a little over three years, following its acquisition in February 2021 for approximately $1.3 billion in a combination of cash and stock. This high-profile acquisition by Take-Two Interactive includes the transfer of Gearbox’s renowned development studios located in Austin, Texas, and in Quebec, Montreal.

Alongside these studios, the deal hands over the intellectual properties for several major franchises, including Borderlands, Tiny Tina, Homeworld, Risk of Rain, and Duke Nukem. Crucially, Embracer Group is retaining Gearbox’s publishing division.

This means that publishing responsibilities for titles such as Remnant 2 and the upcoming Hyper Light Breaker will remain with Embracer.

According to a statement from Embracer Group, other as yet unannounced games under the Gearbox publishing label will continue to be managed internally.

In addition, Embracer will retain the rights to MMO titles Neverwinter Online and Star Trek Online, along with studios Lost Boys Interactive and Captured Dimensions.

These retained assets and teams are set to be integrated into other parts of Embracer’s operations in the near future. This strategic sale comes amid significant restructuring efforts by Embracer Group, influenced by the breakdown of a previously anticipated $2 billion investment from external backers.

In September 2023, reports emerged indicating Embracer was considering divesting from Gearbox, following the failed investment deal.

In the past year, Embracer has undergone a period of consolidation, closing seven studios, including Saints Row developer Volition, and canceling 29 unannounced games across its portfolio.

Among the affected projects was a rumored Deus Ex title in development at Eidos Montreal. Speaking to the scale and intent of this transaction, Embracer leadership emphasized that the recalibrated company structure will now focus on core publishing and development strengths.

The sale of Gearbox Entertainment and its marquee franchises to Take-Two Interactive underscores a significant moment in the ongoing realignment of major players in the global gaming industry. Gearbox Entertainment, with its celebrated Borderlands series continuing to enjoy critical and commercial success, is poised for a new chapter under Take-Two’s stewardship.

Meanwhile, Embracer Group’s decision to refocus on publishing and selected live service games reflects broader trends shaping the landscape of modern video game development and distribution. With this deal, Take-Two secures valuable franchises, further strengthening its portfolio on all key gaming platforms, while Embracer reorients toward strategic growth and streamlined operations.

Borderlands Take-Two Interactive Take-Two Gearbox Entertainment Embracer Group Gearbox Tiny Tina Homeworld Risk of Rain Duke Nukem Remnant 2 Hyper Light Breaker Neverwinter Online Star Trek Online Lost Boys Interactive Captured Dimensions Volition Eidos Montreal Deus Ex