top of page

Take-Two has announced plans to purchase Gearbox, the developer behind Borderlands

In a significant development in the gaming industry, Take-Two Interactive Software has revealed its acquisition of Gearbox Entertainment, renowned for its flagship first-person shooter game, Borderlands, from Sweden’s Embracer Group. The acquisition, valued at $460 million, marks a notable shift in ownership and strategic partnerships within the gaming landscape.

Notably, Take-Two will pay the entire purchase price of $460 million to Embracer Group in Take-Two shares, rather than cash. This move comes as a substantial discount for Embracer, which initially acquired Gearbox in a deal valued at up to $1.4 billion back in 2021. Embracer's decision to sell Gearbox at a reduced price underscores the evolving dynamics of the gaming market and the strategic considerations faced by companies looking to optimize their portfolios.

In a separate statement addressing the financial implications of the deal, Embracer highlighted that the transaction with Take-Two would significantly reduce its net debt by approximately 3.2 billion crowns ($301.23 million), bringing it down to 3.5 billion crowns. Moreover, Embracer anticipates that the acquisition will immediately bolster its free cash flow generation, aligning with its ongoing efforts to streamline operations and enhance financial resilience.

Commenting on the acquisition, Strauss Zelnick, Chairman and CEO of Take-Two, expressed excitement about the opportunity to strengthen the company's creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise. Under the terms of the acquisition, Gearbox will operate as a distinct studio within 2K, a publishing label owned by Take-Two. Founder and CEO Randy Pitchford will continue to lead Gearbox, ensuring continuity and preserving the studio’s creative vision and identity.

David Ismailer, President of 2K, echoed Zelnick's sentiments, expressing enthusiasm about welcoming Randy Pitchford and his team of passionate developers to 2K. Ismailer highlighted the successful partnership between 2K and Gearbox on previous iterations of the Borderlands franchise and expressed excitement about collaborating on future projects.

In response, Randy Pitchford, Founder and CEO of Gearbox Entertainment, expressed confidence in the acquisition, stating that joining forces with Take-Two and 2K will help Gearbox ascend to the next level. Pitchford emphasized Take-Two and 2K's commitment to creativity, happiness, and profitability and expressed excitement about the potential for collaboration. The completion of the acquisition is slated for the first quarter of Take-Two’s fiscal year 2025, signaling a strategic alignment of resources and capabilities between the two entities.

Source: adapted from an article by Maya Robertson, Author for Mobile Marketing Reads.

bottom of page