Embracer Group is considering the possibility of selling Gearbox Entertainment, the US-based studio behind the Borderlands franchise. This option is being explored as a potential way of stabilizing Embracer’s financial position. The revelation has made the future of Gearbox uncertain and definitely caught the attention of the gaming fraternity.
A report by Reuters claimed that three sources familiar with the situation have disclosed the contemplation taking place inside Embracer Group. This decision, motivated by the conglomerate’s financial considerations, has raised eyebrows across the gaming community.
In fact, market materials for Gearbox Entertainment may have even been made available for potential buyers to review. There is interest among international gaming groups in the studio mixed with a sense of caution. Both Embracer Group and Goldman Sachs (they are collaborating on the sale) have declined to comment on the situation.
Embracer Group acquired Gearbox Entertainment in February 2021 marking a significant milestone in the gaming industry. The staggering $1.35 billion deal brought the creators of the iconic Borderlands franchise under the Embracer umbrella. Embracer continued its expansion with acquisitions of Crystal Dynamics, Square Enix Montréal, and Eidos-Montréal.
In June 2023, following the collapse of a $2 billion deal, the company unveiled a restructuring programme that included layoffs. Earlier this month, Embracer Group’s subsidiary, Volition, the developer behind the popular Saints Row series, announced its closure after three decades of game development.
Borderlands 3 is slated to arrive on Nintendo Switch on October 6th, 2023. The announcement was made just a few weeks ago. Will the uncertain prospects of Gearbox Entertainment also affect the release? We will find out pretty soon. For now, the gaming industry is abuzz with the speculation. There are a lot of questions, and no definitive answers.