Embracer Selling Gearbox to Take-Two

The Embracer Group fire sale continues, as the overextended publisher announces the sale of Gearbox Entertainment to Take-Two Interactive in a deal valued at USD 460 million in stock. "My primary interest is always Gearbox, especially our talent and our customers," says Randy Pitchford, founder and CEO of Gearbox Entertainment. "I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be." The deal includes Gearbox Software, Gearbox Montréal, Gearbox Studio Quebec, and the IP for Borderlands, Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem. Word is Embracer will retain select assets after the deal consummates in Q1 FY 2024/25:
Embracer Group has today entered into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. (“Take-Two”). The proceeds from the deal will, upon closing, significantly reduce net debt, earnout obligations and capex. Embracer retains selected companies, including Gearbox Publishing San Francisco (to be renamed), with the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases.
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31.
 
Re: Take-Two Buys Gearbox
Mar 29, 2024, 16:37
NKD
31.
Re: Take-Two Buys Gearbox Mar 29, 2024, 16:37
Mar 29, 2024, 16:37
NKD
 
I wonder what the Shark Card equivalent will be for future Gearbox games?
Do you have a single fact to back that up?
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30.
 
Re: Take-Two Buys Gearbox
Mar 29, 2024, 01:59
30.
Re: Take-Two Buys Gearbox Mar 29, 2024, 01:59
Mar 29, 2024, 01:59
 
Got that man, have the nicest sleep !
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29.
 
Re: Take-Two Buys Gearbox
Mar 29, 2024, 00:29
Prez
 
29.
Re: Take-Two Buys Gearbox Mar 29, 2024, 00:29
Mar 29, 2024, 00:29
 Prez
 
I hate very few things in life anymore. I gave it up to protect my sanity. The vast majority of the time I can muster little more than disappointment or a cynical "it figures".

But Embracer Group? I LOATHE them. (The company and what it signifies, not the people. I don't hate anyone). I hate them so much it even surprises me. The negative effect that they are having on gaming is palpable and pronounced. I have almost nothing left. Don't fuck with one of the very few things that I do have.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
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28.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 22:41
28.
Re: Take-Two Buys Gearbox Mar 28, 2024, 22:41
Mar 28, 2024, 22:41
 
Be Embracer a publisher or not, it definitely provided funds to its erstwhile owned studios for the completion of their games while the expectations of returns persisted.

Wingefors said that they paid more to Steam, PlayStation Store, etc (and lets not call that publishing ), than what they put in developing its studios' games.

But enough, suffice to say I take out my vibes two times a day, so they are happy.
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27.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 20:45
Prez
 
27.
Re: Take-Two Buys Gearbox Mar 28, 2024, 20:45
Mar 28, 2024, 20:45
 Prez
 
Embracer is not a publisher by my definition. You know how some games have the financial backing of investors? They have no interest in what you're making; they just are betting that they will see a return on their investment. Embracer is a holding company whose sole purpose is acquisition of properties to have them. The more properties would be more leverage they see themselves having for future money-making ventures, the potential profits of which would go towards the acquisition of still more properties. They are disgusting, so yeah, very bad vibes.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
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26.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 20:06
26.
Re: Take-Two Buys Gearbox Mar 28, 2024, 20:06
Mar 28, 2024, 20:06
 
What's with the bad vibes ?

In my view, Embracer tried something bold and epic.
But economic post-pandemic world conditions changed for the worst affecting all countries and businesses (exception, greedy mega corporations), and Embracer went under.

Fact: all the great game publishers are adjusting their belts.

Maybe some game studios that they bought would have closed earlier but for Embracer buying spree.
So, those studios may have gotten some hope and an extended life for a couple years, even fininishing some games that otherwise would not exist now.

Not so bad.

Hope Gearbox is done with the restrictive and repetitive miniarenas every hundred meters after TTW and back to combat in diverse areas while exploring like in BL1, 2, TPS.
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25.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 19:26
25.
Re: Take-Two Buys Gearbox Mar 28, 2024, 19:26
Mar 28, 2024, 19:26
 
JTW wrote on Mar 28, 2024, 17:34:
Gearbox has it's issues.

* its
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24.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 17:37
Prez
 
24.
Re: Take-Two Buys Gearbox Mar 28, 2024, 17:37
Mar 28, 2024, 17:37
 Prez
 
JTW wrote on Mar 28, 2024, 17:34:
Gearbox has it's issues. Take Two has LOTS of issues.

Both are better than Embracer, which is an issue singularity.

Agreed. Greedy publishers are one thing. The Embracer Group is in a special class of despicable all by their lonesome.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
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23.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 17:34
JTW
23.
Re: Take-Two Buys Gearbox Mar 28, 2024, 17:34
Mar 28, 2024, 17:34
JTW
 
Gearbox has it's issues. Take Two has LOTS of issues.

Both are better than Embracer, which is an issue singularity.
22.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 17:22
22.
Re: Take-Two Buys Gearbox Mar 28, 2024, 17:22
Mar 28, 2024, 17:22
 
Prez wrote on Mar 28, 2024, 17:20:
NKD wrote on Mar 28, 2024, 16:37:
Take-Two is the single greediest publisher in the entire rotten biz. This is nothing but bad news for anyone who likes Gearbox or their games.

Personally I would call it a 30-way tie for first, but that's just me...

That would be my vote as well.
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21.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 17:20
Prez
 
21.
Re: Take-Two Buys Gearbox Mar 28, 2024, 17:20
Mar 28, 2024, 17:20
 Prez
 
NKD wrote on Mar 28, 2024, 16:37:
Take-Two is the single greediest publisher in the entire rotten biz. This is nothing but bad news for anyone who likes Gearbox or their games.

Personally I would call it a 30-way tie for first, but that's just me...
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
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20.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 16:37
NKD
20.
Re: Take-Two Buys Gearbox Mar 28, 2024, 16:37
Mar 28, 2024, 16:37
NKD
 
Take-Two is the single greediest publisher in the entire rotten biz. This is nothing but bad news for anyone who likes Gearbox or their games.
Do you have a single fact to back that up?
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19.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 16:15
Prez
 
19.
Re: Take-Two Buys Gearbox Mar 28, 2024, 16:15
Mar 28, 2024, 16:15
 Prez
 
jdreyer wrote on Mar 28, 2024, 15:53:
RogueSix wrote on Mar 28, 2024, 12:44:
I can call myself lucky enough to not give a shit about Gearbox. Take2 means they are guaranteed to be turned into all-out GaaS slaves. Take2 has already been making over 80% of their revenue from MTX so welcome to Monetization Central, Gearbox!
Gearbox games have been MTX'd for over a decade. Luckily you could just ignore it and it didn't affect the game much. Hope it stays that way.

I love the Borderlands universe, so you might take that as a reason why I excuse microtransactions in Borderlands, but the truth is I have to be reminded that they are even there. Like you just did. As microtransactions go, they are among the least obtrusive example of the practice that I have seen. You can chalk that up to Gearbox being better about it, or you can chalk it up to Riley Pitchford being such a doofus he can't even do exploitative right. Either way, I am glad that it is the way it is.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
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18.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 15:53
18.
Re: Take-Two Buys Gearbox Mar 28, 2024, 15:53
Mar 28, 2024, 15:53
 
RogueSix wrote on Mar 28, 2024, 12:44:
I can call myself lucky enough to not give a shit about Gearbox. Take2 means they are guaranteed to be turned into all-out GaaS slaves. Take2 has already been making over 80% of their revenue from MTX so welcome to Monetization Central, Gearbox!
Gearbox games have been MTX'd for over a decade. Luckily you could just ignore it and it didn't affect the game much. Hope it stays that way.
If Russia stops fighting, the war ends. If Ukraine stops fighting, Ukraine ends. Slava Ukraini!
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17.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 14:34
17.
Re: Take-Two Buys Gearbox Mar 28, 2024, 14:34
Mar 28, 2024, 14:34
 
Not sure I'm happy with Take 2. they have squandered their opportunity to make a new Dungeon Siege game. Something they have since they bought the IP. I was really hoping that game of all games would have gotten a remaster version. Or at least a new game developed.

Its been really sad to see that IP go to waste. Really hated it when Chris Taylor had to close his doors and sold off all this Titles. Was a sad day indeed!
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16.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 14:04
16.
Re: Take-Two Buys Gearbox Mar 28, 2024, 14:04
Mar 28, 2024, 14:04
 
Leahi84 wrote on Mar 28, 2024, 13:37:
Prez wrote on Mar 28, 2024, 13:36:
Desalus wrote on Mar 28, 2024, 13:15:
Embracer bought them for $1.3 billion three years ago. They must be very desperate to take a loss of $840 million.

Good. The faster the utter pox upon gaming that is Embracer Group is no more, the better. They can't die fast enough.

What did they do wrong other than get screwed on a major investment deal falling through, and then have to close or sell everything off to avoid going bankrupt?

I sincerely hope that you do not seriously believe that the failed Saudi deal was the only reason here. Also, do you have any proof for how Embracer "got screwed"? What did the other party do that could be construed as "screwing"? Well? Let's hear it...

Besides, let us play stupid here for a moment and pretend that the Saudi deal IS in fact the only reason that shit went south. The fact alone that Wingefors allegedly relied on a merely prospective deal to make all sorts of crazy acquisitions should be more than enough to get him fired by the board and maybe even thrown in jail.
How stupid would that be? Who (with a modicum of intelligence) spends money that you do not even have? Right. No one.
You would only do this in the business world if you had a preliminary contract with very concise regulations regarding any pending transactions or even a hefty penalty clause in case the other side barges out of the deal.

None of that was in place so Embracer, namely Wingefors, did EVERYTHING wrong here that you possibly can. He spent money that he did not have. He had no written terms or agreements under which the Saudis could be held liable for damages. Wingefors fucked up in unfathomable quantities of upfuckery.

At least that would have to be the verdict IF we believe the Saudi story. I am more inclined to believe that Wingefors is a somewhat intelligent being and that the real problem here was simply overextension. Wingefors might have also gotten a little too cocky after he made some seemingly good deals like the relatively modest appearing acquisition fees for LotR and for Crystal Dynamics/Eidos Montreal.

And then Ukraine vs. Russia happened. Interest rates exploded from 0.0% to over 5.x% within only 15 months. Cheap money all of a sudden was not cheap anymore. Embracer, like every company with a high amount debt, took a huge hit because of the increased rates. That, my friends, is the real problem of Embracer.
Many countries in EU were hit hard by the rising interest rates and inflation (a deadly couple). In Germany, we have had an increase of +22% in insolvencies and Sweden (Embracer's home) has even had +29% insolvencies in 2023 YoY.
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15.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 13:49
Prez
 
15.
Re: Take-Two Buys Gearbox Mar 28, 2024, 13:49
Mar 28, 2024, 13:49
 Prez
 
They are a holding company, not a publisher. To me, there is a difference. They're one step short of being a patent troll company in my eyes. They care NOTHING for the properties they acquire, only in the monetary value that can be exploited.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
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14.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 13:47
14.
Re: Take-Two Buys Gearbox Mar 28, 2024, 13:47
Mar 28, 2024, 13:47
 
Leahi84 wrote on Mar 28, 2024, 13:37:
Prez wrote on Mar 28, 2024, 13:36:
Desalus wrote on Mar 28, 2024, 13:15:
Embracer bought them for $1.3 billion three years ago. They must be very desperate to take a loss of $840 million.

Good. The faster the utter pox upon gaming that is Embracer Group is no more, the better. They can't die fast enough.

What did they do wrong other than get screwed on a major investment deal falling through, and then have to close or sell everything off to avoid going bankrupt? They hadn't really even released any games yet, at least nothing too major that I can remember.

I think there's a very strong dislike for market consolidation. Embracer was going on a buying spree, and now they're having to face the consequences.
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13.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 13:37
13.
Re: Take-Two Buys Gearbox Mar 28, 2024, 13:37
Mar 28, 2024, 13:37
 
Prez wrote on Mar 28, 2024, 13:36:
Desalus wrote on Mar 28, 2024, 13:15:
Embracer bought them for $1.3 billion three years ago. They must be very desperate to take a loss of $840 million.

Good. The faster the utter pox upon gaming that is Embracer Group is no more, the better. They can't die fast enough.

What did they do wrong other than get screwed on a major investment deal falling through, and then have to close or sell everything off to avoid going bankrupt? They hadn't really even released any games yet, at least nothing too major that I can remember.
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12.
 
Re: Take-Two Buys Gearbox
Mar 28, 2024, 13:36
Prez
 
12.
Re: Take-Two Buys Gearbox Mar 28, 2024, 13:36
Mar 28, 2024, 13:36
 Prez
 
Desalus wrote on Mar 28, 2024, 13:15:
Embracer bought them for $1.3 billion three years ago. They must be very desperate to take a loss of $840 million.

Good. The faster the utter pox upon gaming that is Embracer Group is no more, the better. They can't die fast enough.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
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