Embracer could sell-off Gearbox amid ongoing financial difficulties

By FileTrekker 15 days ago, last updated 15 days ago

In the wake of Saints Row developer Volition closing its doors, a report coming in via Reuters suggests that Embracer Group is potentially selling one of its marquis studios, Gearbox Entertainment, although currently, there is no official confirmation that a sale has been approved.

Gearbox is best known as the developer of the Borderlands, Homeworld, Risk of Rain and the Brothers in Arms series. According to anonymous sources speaking to Reuters, a number of potential buyers, as yet unnamed, have expressed interest in purchasing the studio and its associated publishing arm. Embracer is allegedly working with their investment banks, Goldman Sachs and Aream & Co, on the potential sale.

Embracer purchased Gearbox in 2021 for $1.3 billion, the crowning jewel of a purchasing spree that also saw Crystal Dynamics, Tripwire, Saber Interactive, Square Enix Montreal, and Eidos Montreal join their studio portfolio. Unfortunately, Embracer ran aground in May of this year, when a planned $2 billion deal fell through unexpectedly, leading to the company restructuring many of its business units.

The failed deal was described as a "groundbreaking strategic partnership" that "would have set a new benchmark for the gaming industry," although details of the deal have not been publicly revealed. "The transaction had many of the highest-rated global advisories onboard with several hundred people engaged on both sides," Embracer stated, adding, "All documentation was finalized and ready to go."

Presumably, the sale of Gearbox would be aimed at stabilising Embracer's financial obligations and future performance. Adding fuel to the fire is a statement via Bloomberg from Gearbox Chief Communications Officer Dan Hewitt, who stated that "there are many options under consideration, including Gearbox’s transfer, taking Gearbox independent, and others."


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