Gearbox Entertainment’s time with Embracer Group could come to an end in the near future, according to a recent report by Reuters. Sources say that Embracer is working with Goldman Sachs and Aream & Co. to explore a sale of the U.S. game developer following a difficult financial year.
According to the report, a $2 billion investment was verbally reached by Embracer and an unknown party in May that would have given the company “contracted development revenue” for over six years. Unfortunately, the deal fell through and in June, Embracer announced its plan to reduce its debt through a massive restructuring which included studio closures, canceled projects, and layoffs. Reuters claims that Gearbox is one of the many in the running to be sold off.
First established in 1999, the Texas-based Gearbox Entertainment became widely known in the video game industry for the success of its Borderlands games. In 2021, the American developer was purchased by Embracer Group following a $1.4 billion agreement. Since being purchased by Embracer, Gearbox Entertainment published Tribes of Midgard, Have a Nice Death, Eyes in the Dark: The Curious Case of One Victoria Bloom, Blanc, Hyper Light Breaker, Risk of Rain Returns, and recently Remnant II.
The report revealed that Embracer is already looking at some potential buyers that mainly consist of international gaming groups. That said, Reuter’s sources stated that it is unknown whether the sale will follow through. But regardless of whether Gearbox Entertainment is sold, more of its kind is likely to follow in its restructuring efforts.
Embattled video game conglomerate Embracer Group is looking to sell Borderlands maker Gearbox just two-and-a-half years after purchasing it for $1.3 billion, Bloomberg News can confirm. Gearbox will also explore spinning off and going independent: https://t.co/ua7hbVNKL0
— Jason Schreier (@jasonschreier) September 11, 2023
Gearbox has also talked about spinning off and going independent. “The base case is that Gearbox remains a part of Embracer,” wrote Gearbox Chief Communications Officer Dan Hewitt in an email to staff seen by Bloomberg. “However, there are many options under consideration, including Gearbox’s transfer, taking Gearbox independent, and others. Ultimately, we’ll move ahead with whichever path is best for both Gearbox and Embracer.”