Embracer reportedly considering selling Borderlands developer Gearbox
Gearbox is reportedly the latest studio to be affected by Embracer Group's restructuring efforts.
In June, Embracer announced a «comprehensive restructuring programme» to help recover from its large spending spree over recent years and a 40 percent drop in share price following a report of a failed «major strategic partnership» with Savvy Games Group, which is backed by the Saudi Arabian government.
As part of the restructuring, Saints Row developer Volition Games was shut down «effective immediately» at the end of last month. A new report from Reuters claims that Borderlands developer Gearbox will be one of the next studios Embracer sheds.
Embracer is reportedly working with investment banks Goldman Sachs and Aream & Co to explore the option of a sale, and sources say the company has already received «interest from third parties» in acquiring Gearbox.
Share prices in Embracer have since turned positive following the news.
Gearbox was acquired by Embracer in 2021. Sales of its most recently developed game, New Tales from the Borderlands, were low according to publisher Take-Two, but fellow Borderlands spin-off Tiny Tina's Wonderlands exceeded Gearbox's expectations and CEO Randy Pitchford said «future experiences» were already in development a year ago. As a publisher, Gearbox is set to release Hyper Light Breaker and Homeworld 3 in early 2024.
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