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Embracer is considering options for its U.S. game developer Gearbox Entertainment including a sale as Europe’s largest gaming company looks to shore up its finances, three people familiar with the matter told Reuters.
Embracer is weighing selling the unit, which is known for first-person shooter game Borderlands, after receiving interest from third parties, two of the people said.
Embracer, majority owned by founder Wingefors, purchased Gearbox in February 2021 in a deal that valued the business at up to $1.4 billion at the time.
Gearbox marketing materials are already available for potential buyers, which consist mainly of international gaming groups, said two of the people.
The sources, who requested anonymity as the matter is confidential, cautioned a deal may not happen.
Seems sorta weird they’d be looking to offload them for financial reasons. Gearbox seems like it’d be one of their more profitable studios.
Someone came along and said they’d like to buy them. Perhaps at an attractive offer given the deal that fell through or perhaps at an even higher price than Embracer paid for it. Anyone would consider a sale at a decent price if someone approached them with the offer.
Based off the article, it sounds like it was purchased quite recently as well. My personal guess is Embracer was buying up studios faster than it could support, counting on getting more funding down the line. Then Embracer had a deal fall through and realized they were laden with debt and had to drop the load.
Maybe Gearbox was giving the worst return on investment since it was such an expensive purchase which made it the prime target to sell.
You think? The last game they put out was that Tiny Tina’s Wonderlands one, and I don’t think it did gangbusters.
They basically have one IP and it keeps getting staler and staler.
Gearbox is also a publishing arm, which recently put out Remnant II, and they seem to have a stake or ownership in Risk of Rain, Bulletstorm, and Torchlight.