Read from tweaktown:
The Embracer Group will reportedly sell Borderlands creator Gearbox Entertainment next month, sources have told Kotaku
In October 2023, Reuters and Bloomberg reported that Embracer Group was trying to sell some of its operating groups to recoup cash. Gearbox, the team behind the mega-popular billion-dollar Borderlands franchise, was on the potential divestment list. Now sources tell Kotaku's Ethan Gach that a Gearbox sale is currently being finalized.
So why is Embracer selling one of its most lucrative operating units? After all, the Borderlands franchise has sold over 83 million copies total, and Gearbox accounted for double-digit percentage shares of Embracer's quarterly revenue right from the get-go. The rationale is pretty simple: The company needs money to help triage a missed billion-dollar deal.
The decentralized gaming empire was dealt a significant blow when a $2 billion deal with an unnamed party had fallen through (sources tell Stephen Totilo that Saudi-funded Savvy Games Group was the mystery party).
Embracer was really depending on this fortune to help keep its operations going. In 2021, Embracer bought Gearbox in a deal worth up to $1.3 billion, with $363 million paid upfront in cash and shares, and the $1 billion bonus provision in certain thresholds are met across a six-year span.
Now years later, after the successful release of the recent Tiny Tina's Wonderlands game, reports indicate that Embracer is looking to sell Gearbox Entertainment.
While Gearbox's current financial performance is a mystery (it's likely up thanks to Wonderlands), the division made over $128 million across the last three quarters of 2021.
The Embracer Group will reportedly sell Borderlands creator Gearbox Entertainment next month, sources have told Kotaku
In October 2023, Reuters and Bloomberg reported that Embracer Group was trying to sell some of its operating groups to recoup cash. Gearbox, the team behind the mega-popular billion-dollar Borderlands franchise, was on the potential divestment list. Now sources tell Kotaku's Ethan Gach that a Gearbox sale is currently being finalized.
So why is Embracer selling one of its most lucrative operating units? After all, the Borderlands franchise has sold over 83 million copies total, and Gearbox accounted for double-digit percentage shares of Embracer's quarterly revenue right from the get-go. The rationale is pretty simple: The company needs money to help triage a missed billion-dollar deal.
The decentralized gaming empire was dealt a significant blow when a $2 billion deal with an unnamed party had fallen through (sources tell Stephen Totilo that Saudi-funded Savvy Games Group was the mystery party).
Embracer was really depending on this fortune to help keep its operations going. In 2021, Embracer bought Gearbox in a deal worth up to $1.3 billion, with $363 million paid upfront in cash and shares, and the $1 billion bonus provision in certain thresholds are met across a six-year span.
Now years later, after the successful release of the recent Tiny Tina's Wonderlands game, reports indicate that Embracer is looking to sell Gearbox Entertainment.
While Gearbox's current financial performance is a mystery (it's likely up thanks to Wonderlands), the division made over $128 million across the last three quarters of 2021.
