Embracer Group is Reportedly Considering Selling Gearbox Entertainment
Embracer Group completed its acquisition of Borderlands developer Gearbox Entertainment in April 2021 in a deal worth up to $1.4 billion, though it seems the Swedish firm is already considering reversing course. In a report published by Reuters, it’s been claimed that the Embracer Group is considering several options for Gearbox Entertainment, with a full sale being one among them.
Allegedly, Embracer is working with investment banking firm Goldman Sachs and Aream & Co in order to explore a sale, as per three anonymous sources familiar with the process, and has already received interest from some third parties, most of whom are described as “international gaming groups”. Marketing materials for Gearbox have reportedly already been made available to potential buyers, though the report states that a sale isn’t concretely decided yet, and may not happen in the end.
Apparently, this decision comes after a deal with an undisclosed part worth $2 billion fell through earlier in the year, following with Embracer Group has incurred significant losses. In June, the company announced it was instituting a restructuring program that would involve studios being shut down and in-development projects being cancelled.
Since the acquisition of Gearbox Entertainment, Embracer Group has moved a couple of its owned entities to the publishing label’s management, including Perfect World Entertainment and Volition. The latter, however, was recently shut down.
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