Take-Two Buys Gearbox for $460 Million, Confirms New Borderlands Game Among Other Things
We knew Gearbox Software was about to be sold by Embracer, and today, Take-Two announced it had reached an agreement to purchase the 25-year-old Texan developer for $460 million.
That's a far cry from the $1.3 billion spent by Embracer just over three years ago, which likely speaks of the company's desperation to sell (despite already having sold Saber only two weeks ago). Still, there are some caveats. The transaction is said to exclude 'certain third-party publishing and other assets that the buyer considered superfluous to its business. Gearbox had started publishing third-party games like Tribes of Midgard, Remnant II, and the upcoming Hyper Light Breaker; it is unclear what will happen to them.
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The $460 million will be paid entirely in freshly issued common stock Take-Two shares. The acquisition is expected to be completed before the end of June, and Gearbox will operate as a studio within the 2K label.
The new owner of Gearbox also provided an overview of the developer's upcoming lineup. There are six game projects in various stages of development, including five sequels, two of which are from the Borderlands and Homeworld franchises and at least one new IP. We all knew of Homeworld 3, of course, which is due to launch in May after several delays. The big news is the new Borderlands game, which had been rumored for some time.
Furthermore, Take-Two expressed an interest in investing further in new projects and in the developer's existing franchises. Strauss Zelnick, Chairman and CEO of Take-Two, stated:
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. This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term
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