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.
Just over three years ago, Embracer acquired Gearbox for up to $1.3 billion, although it is very likely that the maximum earnout was not reached. The transaction (which follows the recent sale of Saber Interactive) 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.
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 growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.
David Ismailer, President of 2K, said:
With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling. We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues. We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series.
Randy Pitchford, Founder and CEO of Gearbox Entertainment, added:
Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level. Take-Two and 2K have demonstrated repeatedly their commitment to our engine of generating creativity, happiness, and profit. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm's length as partners. I’m incredibly excited about what we can accomplish now that we're fully aligned as one.
