Borderlands 3
If you’re a game developer owned by Embracer Group at this point, you are nervous about layoffs, shutdowns or game cancellations after the last few years. But now, there is a somewhat happy ending for one of them, Gearbox.
It’s just been announced that Take-Two, which owns GTA developer Rockstar, will purchase Gearbox for $460 million. This also includes the properties Gearbox owns, the Borderlands and Tiny Tina’s Wonderlands franchises, Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem. The report says Gearbox has six games in development, five sequels, including a new Borderlands game, the not-announced-but-definitely-happening Borderlands 4. Here’s Strauss Zelnick:
“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 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.”
Gearbox has been working with 2K and Take-Two for decades, so it was a logical place for them to land. This is, of course, not a great look for Embracer, who only purchased Gearbox three years ago. The price tag back then was “worth up to $1.3 billion” but there were a lot of strings attached to that where it’s not necessarily the case that selling for $$460 million netted them a ~$900 million loss.
As for what this means for gamers, it would seem something like the Borderlands franchise is now on more stable ground, as it was hard to believe any project at Embracer is fully safe these days. Last year, Embracer quietly cancelled 29 different unannounced games and shut down seven studios in a six month period including Volition and Free Radical Design. That came with around 1,400 layoffs. More recently, Embracer laid off 97 people at Eidos in Janaury and cancelled a Deus Ex game.
Sufficed to say, those at Gearbox probably feel pretty good about this. And as for Take-Two, Borderlands is still a valuable IP, and Tiny Tina’s Wonderland was a surprise hit. There’s a new Homeworld game coming as well. In an era for multi-billion dollar acquisition, Gearbox for $460 million doesn’t seem that bad. That’s probably a third of what GTA 6 will sell on day one next year.
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