Embracer Might Be Selling Off Gearbox
Illuminated Gearbox logo sign
Swedish gaming conglomerate Embracer Group has become a bit of an unstoppable force in the games industry in recent years, snapping up studios and IPs left and right. It’s managed to grab properties like Tomb Raider and Deus Ex, and even the IP rights to The Lord of the Rings.
Recent developments though have shown that Embracer isn’t quite as unstoppable as it once seemed. In June, Embracer announced a huge amount of layoffs across many of its studios, amidst a large-scale restructuring in the wake of a failed $2 billion investment bid allegedly from the Saudi-backed Savvy Games, according to Axios.
Now, as part of that restructuring, it looks like Embracer is trying to offload one of its bigger acquisitions, Gearbox Entertainment — the developer of Borderlands. A new report from Reuters says that Embracer is working with Goldman Sachs and Aream & Co to explore options for selling Gearbox, with sources reportedly telling Reuters that marketing material for the developer has been made available for potential buyers.
Further reporting from Bloomberg suggests that Gearbox will also be exploring other options, including “Gearbox’s transfer [and] taking Gearbox independent.” Bloomberg cites an email sent to staff from Gearbox chief communications officer Dan Hewitt, where Hewitt says whatever happens, it will be the best for both Gearbox and Embracer.
“The base case is that Gearbox remains a part of Embracer,” Hewitt reportedly wrote in the email, “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.”
Embracer Group acquired Gearbox back in 2021 for $1.3 billion, alongside acquisitions of Easybrain and Aspyr Media, the latter best known for its game porting capabilities. Since being acquired, two games have been released by Gearbox – Tiny Tina’s Wonderlands, and New Tales from the Borderlands – both spinoffs of the Borderlands series. The company also published a number of smaller games from external developers.
