RukBot
09-12-2023, 07:42 PM
https://www.destructoid.com/wp-content/uploads/2023/09/tiny-tinas-wonderlands-screenshot.jpg
Embracer Group is a large company that has its fingers in quite a few pies. In 2021, Gearbox Entertainment was acquired by Embracer for an eye-watering $1.3 billion. Despite the pricey purchase, it seems not all is well, and a report from Reuters (https://www.reuters.com/markets/deals/swedens-embracer-weighs-options-borderlands-maker-gearbox-entertainment-sources-2023-09-11/) claims that Embracer is considering its options with Gearbox.
Reuters, citing three people familiar with the matter, states that the involved parties are working with Goldman Sachs and Aream & Co to explore a possible sale, and this comes after Embracer received interest from third parties. This is certainly big news, but it's not entirely a surprise, as Embracer had previously made it known that the company is undergoing drastic changes.
In June, the company released an open letter (https://embracer.com/releases/open-letter-by-embracer-group-ceo-on-restructuring-program/) explaining that it is aiming to shift from a "heavy-investment-mode to a highly cash-flow generative business." Doing this will require "closing or divestments of some studios and the termination or pausing of some ongoing game development projects." We've already seen the effects of this with the closure of Volition (https://www.destructoid.com/embracer-group-is-closing-down-volition-games/) and Campfire Cabal.
https://www.destructoid.com/wp-content/uploads/2023/06/embracer-group-restructure-layoffs.png Image via Embracer Group.
What happens to Gearbox now?Gearbox is mostly known for the Borderlands franchise, with 2019's Borderlands 3 serving as the latest mainline entry. It has also published several successful titles, including the unexpected hit Remnant 2 (https://www.destructoid.com/reviews/review-remnant-2/). Currently, it is unclear what the studio's future will look like. Reuters warns that the deal may not happen, as nothing has been finalised. However, Embracer's actions this year suggest the company is eager to shed weight.
It's worth keeping in mind that the report mentions a sale as just one of its options with Gearbox. Though it's not stated, it stands to reason that a possible studio closure may be one of the other options, which would be bad news for Borderlands fans.
Gearbox was founded in 1999, and since then it has placed its fingerprints on several massive franchises, including Duke Nukem and Half-Life. Though it appears it may have an uncertain future ahead, its longevity thus far gives hope that it'll endure.
The post Embracer is reportedly considering selling Gearbox Entertainment (https://www.destructoid.com/embracer-is-reportedly-considering-selling-gearbox-entertainment/) appeared first on Destructoid (https://www.destructoid.com).
More...
Embracer Group is a large company that has its fingers in quite a few pies. In 2021, Gearbox Entertainment was acquired by Embracer for an eye-watering $1.3 billion. Despite the pricey purchase, it seems not all is well, and a report from Reuters (https://www.reuters.com/markets/deals/swedens-embracer-weighs-options-borderlands-maker-gearbox-entertainment-sources-2023-09-11/) claims that Embracer is considering its options with Gearbox.
Reuters, citing three people familiar with the matter, states that the involved parties are working with Goldman Sachs and Aream & Co to explore a possible sale, and this comes after Embracer received interest from third parties. This is certainly big news, but it's not entirely a surprise, as Embracer had previously made it known that the company is undergoing drastic changes.
In June, the company released an open letter (https://embracer.com/releases/open-letter-by-embracer-group-ceo-on-restructuring-program/) explaining that it is aiming to shift from a "heavy-investment-mode to a highly cash-flow generative business." Doing this will require "closing or divestments of some studios and the termination or pausing of some ongoing game development projects." We've already seen the effects of this with the closure of Volition (https://www.destructoid.com/embracer-group-is-closing-down-volition-games/) and Campfire Cabal.
https://www.destructoid.com/wp-content/uploads/2023/06/embracer-group-restructure-layoffs.png Image via Embracer Group.
What happens to Gearbox now?Gearbox is mostly known for the Borderlands franchise, with 2019's Borderlands 3 serving as the latest mainline entry. It has also published several successful titles, including the unexpected hit Remnant 2 (https://www.destructoid.com/reviews/review-remnant-2/). Currently, it is unclear what the studio's future will look like. Reuters warns that the deal may not happen, as nothing has been finalised. However, Embracer's actions this year suggest the company is eager to shed weight.
It's worth keeping in mind that the report mentions a sale as just one of its options with Gearbox. Though it's not stated, it stands to reason that a possible studio closure may be one of the other options, which would be bad news for Borderlands fans.
Gearbox was founded in 1999, and since then it has placed its fingerprints on several massive franchises, including Duke Nukem and Half-Life. Though it appears it may have an uncertain future ahead, its longevity thus far gives hope that it'll endure.
The post Embracer is reportedly considering selling Gearbox Entertainment (https://www.destructoid.com/embracer-is-reportedly-considering-selling-gearbox-entertainment/) appeared first on Destructoid (https://www.destructoid.com).
More...