Under the deal, Take-Two will snap up Gearbox Entertainment’s portfolio of intellectual property, including full ownership of Borderlands and Tiny Tina’s Wonderlands franchises along with Risk of Rain, Homeworld, Brothers in Arms, Duke Nukem, and its future pipeline
Gearbox Entertainment to be acquired by Take-Two in $460m deal. (Credit: DanHewittGBX/Wikimedia Commons)
Interactive entertainment firm Take-Two Interactive Software has agreed to acquire transmedia entertainment developer Gearbox Entertainment from Embracer Group in a deal worth $460m.
Take-Two creates, publishes, and markets interactive entertainment for customers worldwide. The firm builds and issues products principally through video game publishers such as 2K, Rockstar Games, Private Division, and Zynga.
According to the terms of the definitive agreement, Take-Two will fully disburse the consideration of the deal in newly issued shares of its common stock.
Embracer will sell the shares to receive cash proceeds soon after the closing of the transaction. The estimated net cash proceeds amount to nearly $300m-330m.
Gearbox Entertainment has developed various game franchises and acquired properties Duke Nukem and Homeworld.
The transmedia entertainment developer comprises four subsidiaries, namely Gearbox Publishing, Gearbox Software, Gearbox Studio, and Gearbox Properties.
Gearbox Entertainment operates studios in the Texas, US and in Montreal and Quebec City in Canada.
Gearbox Entertainment founder and CEO Randy Pitchford said: “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.”
Through the deal, Take-Two gains access to Gearbox Entertainment’s portfolio of intellectual property, including full ownership of Borderlands and Tiny Tina’s Wonderlands franchises.
The transmedia entertainment developer will also get ownership of Risk of Rain, Homeworld, Brothers in Arms, Duke Nukem, and Gearbox Entertainment’s future pipeline.
Besides, Take-Two will buy Gearbox Software, Gearbox Montréal, and Gearbox Studio Quebec.
Embracer will retain assets such as Gearbox Publishing San Francisco along with publishing rights to the Remnant franchise, the forthcoming Hyper Light Breaker, and other unannounced game releases.
It will also maintain the ownership of Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online, Lost Boys Interactive, and Captured Dimensions.
Through the acquisition, Take-Two aims to strengthen its partnership with Gearbox Entertainment. The deal is also expected to deliver better financial benefits through a fully-integrated operational structure.
Take-Two also expects the transaction to bring opportunities to invest in new projects and to expand Gearbox Entertainment’s proven franchises.
Take-Two Interactive Software chairman and CEO Strauss Zelnick said: “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.”
Subject to customary conditions, including regulatory approvals like merger control clearance, the transaction is expected to be completed in Q1 of Take-Two’s fiscal year 2025.