Embracer Group Sells Gearbox Entertainment To Take-Two Interactive For IDR 7.3 Trillion

Take-Two Interactive buy Gearbox Entertainment (photo: Gearbox)

JAKARTA - Embracer Group confirmed that it had signed an agreement to sell the Gearbox Entertainment division, worth US$460 million (Rp7.3 trillion) to Take-Two Interactive Software, Inc.

"Today's announcement marks the final result of a structured divestment process and is an important step in transforming the Embracer towards a lower net debt and increasing free cash flow," said Lars Wingefors, co-founder and CEO of Embracer.

In a press release, Embracer said that they would divest Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and the Borderlands franchise, Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem.

However, Embracer will retain rights to Gearbox Publishing San Francisco, issuance rights to Remnant, Hyper Light Breaker, and other unannounced games, Cryptic Studios, Lost Boys Interactive, and also Captured Dimensions.

"Through this transaction, we are reducing business risks and increasing profitability as our transition becomes a slimmer and more focused company," Wingefors added.

So, all the assets detained will be integrated into other parts of the Embracer Group. Sales are expected to be completed by the end of June.

Thus, Gearbox will join the 2K division of Take-Two Interactive and will continue to be led by CEO and founder Randy Pitchford.

"As a significant long-term Embracer Group shareholder, I believe in the Embracer Group strategy going forward and fully believe that this transaction is the best scenario and is a clear net positive setting for the Embracer Group, for Take-Two and, of course, for Gearbox Entertainment," said Randy Pitchford, founder and CEO of Gearbox Entertainment.