Mar 28, 2024

Take-Two acquires "Borderlands" developer Gearbox for $460 million.

New York-based video game holding company Take-Two Interactive Software is acquiring "Borderlands" developer Entertainment Company from Embracer Group for $460 million. The deal is expected to close in June, according to a Take-Two release.

The acquisition makes sense because Take-Two is the publisher of Gearbox's "Borderlands." The two companies are already working together on the next installment of the hugely popular series, which was recently adapted into a live-action film that will be released on August 9. The developer will operate as part of Take-Two's 2K brand, with Gearbox founder and CEO Randy Pitchford continuing to lead the division.

In today's announcement, Pitchford explained: [Joining forces with Take-Two Interactive and 2K will take Gearbox to the next level... Take-Two and 2K are our engines of creativity, happiness and profit. Take-Two and 2K have demonstrated time and again their commitment to our engine of creativity, happiness and profit. We have set the standard for interactive entertainment and worked hand-in-hand as partners to achieve remarkable results with groundbreaking and record-breaking games. I am incredibly excited about what we can accomplish now that we are fully united.

Embracer's sale of Gearbox has been on notice for some time, as the company has been involved in a major restructuring since its planned $2 billion investment partnership fell apart last summer. Since then, the media giant has laid off large numbers of employees, closed studios, and sold its subsidiary Saber Interactive and related studios for $247 million.

With this acquisition, Take-Two will acquire the entire "Borderlands" franchise, as well as assets such as "Homeworld," "Risk of Rain," "Brothers in Arms," and the iconic first-person shooter "Duke Nukem"

Take-Two and Gearbox already have six in the pipeline, two from the "Borderlands" series, two from "Homeworld", and at least one new title in co-development.

According to Strauss Zelnick, chairman and CEO of Take-Two,

the integration will strengthen the financial profile of existing projects with Gearbox, and will allow Take-Two's full use of its resources, creating opportunities to drive long-term growth.