Summary
The Embracer Group is reportedly looking to sell offGearbox Entertainment, the studio behind the popularBorderlandsfranchise. The news comes amid Embracer’s efforts at stabilizing the company after its failed deal with Saudi Arabia resulting in a number of studio shutdowns and job losses. Either way, the idea of the company potentially letting go ofGearboxwould do little to inspire confidence in Embracer’s roadmap.
Over the past few years, the Embracer Group looked to bolster its portfolio by aggressively acquiring developers ranging from Gearbox toTomb Raidermaker Crystal Dynamics. The conglomerate even acquired the rights toThe Lord of the RingsIP too. However, despite its seemingly successful buying spree, last year it was reported that a multi-billion dollar deal had fallen through for the company. Recently, this was revealed to be a$2 billion arrangement with Saudi Arabia-backed Savvy Gaming Group. While the exact reason for the botched deal is unknown, the repercussions for Embracer are already starting to make a noticeable impact as the group looks to cut its losses.
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Now, one Reuters report claims that Embracer is currently exploring options for its Gearbox Entertainment subsidiary, including selling the studio. The company is reportedly working with Goldman Sachs and Aream & Co. with the idea of a potential sale, after receiving interest from third parties. Gearbox, which is home to properties likeBorderlandsand more recently,Remnant2, wasacquired by Embracer back in 2021 for $1.3 billion. As of now, it remains to be seen if an actual sale will happen and neither party is yet to make any public comments on the story.
Of course, Embracer has already begun restructuring the company, announcing in June that it would reduce its net debt to less than SEK 10 billion ($903 million) from SEK 16.7 billion ($1.51 million) by the end of the financial year. In other words, this has translated to shutting down studios, canceling projects, and letting people go. Last month alone,Embracer shut down Campfire Cabal, a studio that was barely a year old. Previously, the company even closed off several mobile titles includingDeus Ex GO,Hitman Sniper: The Shadows,Arena Battle Champions, andSpace Invaders: Hidden Heroes.
Time will tell how things pan out for the gaming conglomerate as it undergoes restructuring, especially considering howEmbracer currently has about 221 games in development. It will be particularly interesting to see how things progress forGearboxas newBorderlandsprojects are already in development, one of them including an upcoming movie based on the franchise.
