Embracer Offloads Gearbox to Take-Two - $460 Million Deal Unveiled

[T0@st]

Embracer Group has entered (as of March 28) into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. ("Take-Two"). The proceeds from the deal will, upon closing, significantly reduce net debt, earnout obligations and capex. Embracer retains selected companies, including Gearbox Publishing San Francisco (to be renamed), with the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases.

"Yesterday's announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world's greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two," says Lars Wingefors, co-founder and CEO of Embracer.




"As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment. My primary interest is always Gearbox, especially our talent and our customers. I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be," says Randy Pitchford, founder and CEO of Gearbox Entertainment.

Key transaction details and anticipated financial impacts are outlined here.

View at TechPowerUp Main Site | Source

 

[LabRat 891]

Poor Take-Two... Have to deal w/ Randy, now.

 

[Zareek]

Aka, our investors sucked every last penny out of us so we had to sell a part of our business to remain solvent.

 

[Dwarden]

EG ram head firtst into failed multi billion USD deal and all of sudden were in red numbers.
as result they fired thousands of employees and closed tens of projects and dozens studios ...
on top of that one must wonder who else was sold like Gearbox but w/o fanfare

 

[Vayra86]

Wow. EG keeps two franchises with zero future (Remnant isn't going anywhere, mediocre at best, no USPs) and Gearbox walks away with all of its real IP.

Well played. Definitely net gain for Gearbox indeed.

 

[jpvalverde85]

Finally good news about Embracer. Not that i fully trust Take-Two but is a better culture at least, they still care about the games under their name.

 

[Totally]

Aka, our investors sucked every last penny out of us so we had to sell a part of our business to remain solvent.

The know the winds are are changing and cutting gearbox loose before it becomes too much a liability. They're just letting TT deal with the aftermath. DEI money is running dry, and their dodging the the latter part of the statement "get woke, go broke." All in all pretty sure the studio as is done, wonder what's going to be left after TT cleans house.