Based on multiple sources reported to Reuters, Embracer Group could be looking at potential buyers of Gearbox Software.
The developers behind the Borderlands and Brothers In Arms video game series, Gearbox Software, may be in trouble of being sold again. According to three reported sources published in a report this morning, Embracer Group may be looking at potential buyers to purchase the development studio. This comes at a time where Embracer acquired the development company only two years ago, but has recently announced major restructuring, shutting down studios and overhauls.
The three sources spoke to Reuters, who explained they were “familiar with the matter”, and that Embracer received interest from prospective buyers. While no prices were thrown around on what Gearbox could be going for was unknown, it was originally purchased for $1.3 billion dollars back in February 2021. Based on the sources and the report, potential buyers primarily consisted of “international gaming groups” who already had access to Gearbox’s marketing materials.
To briefly explain the context of what has happened so far within Embracer, it had originally announced back in May of a necessary restructuring of the company following a significant deal that had fallen through unexpectedly. It saw the company’s stock dive over 40% after the news was announced. The deal was later revealed to be a $2 billion partnership with the Saudi government-funded Savvy Games Group, which lasted for seven months of negotiations before Savvy pulled out of the deal.
Deals for Embracer have not been something new as the Swedish company acquired a large piece of Square Enix’s wester development branch for $300 million dollars last year. This deal made the company the owner of Crystal Dynamics, Eidos Montreal, Square Enix Montreal, and a catalogue of IPs including Tomb Raider and Deus Ex.
After many layoffs, division closures and game cancellations, Saints Row developer Volition and Hitman GO studio Onama took the most recent brunt of the cuts. Both studios were immediately shut down throughout this past summer. One of the major releases for Gearbox this year (or in 2024) was supposed to be Homeworld 3, but hopes of that actually happening have slimmed down. Eli Roth’s Borderlands film was also slated to hit theaters summer 2024.
While Embracer seems to be cutting a lot of ties to its studios, they still own a lot of major companies. This list includes publishers Deep Silver (Dead Island 2) and THQ Nordic (Biomutant), developer Coffee Stain Studios (Goat Simulator), developer-publisher Saber Interactive (Evil Dead: The Game), book publisher Dark Horse Comics, and game distributor Limited Run Games, among others.
