Following reports last year that Embracer Group was considering selling Borderlands studio Gearbox as part of its ongoing “comprehensive restructuring programme”, it is now claimed that the sale to a third party is in the “final stages” of completion.
That is according to kotaku, which says Gearbox CEO and co-founder Randy Pitchford had previously told staff that the studio faced one of three possible scenarios: it would remain in Embracer, be sold or finance a buyout, and become independent once again. However, Pitchford reportedly shared an update with employees earlier this week, saying that a decision had been made and that decision, according to Kotaku sources, was to sell.
The publication understands that the sale of Gearbox to an anonymous buyer is currently in the “late stages of completion,” and while Embracer Group, which bought Gearbox for $363 million in 2021, did not respond to Kotaku's requests for comment, Pitchford diverted inquiries from the website. saying, “We'll be happy to share whenever we have projects to announce or news to share as we work hard toward our mission of entertaining the world.”
Newscast: Why are there so many layoffs in the gaming industry?Reports of Gearbox's impending sale follow news from Bloomberg's Jason Schreier that Embracer Group is set to sell publishing group World War Z and Snowrunner Saber Interactive in a deal worth up to $500 million, less than 525 million dollars he paid for the company in 2020.
These two sales, if they go ahead as reported, will be the latest steps in the devastating “restructuring” program that Embracer began last year after the collapse of a $2 billion “major strategic partnership” in May. Embracer has since laid off eight percent of its workforce (a total of 1,387 employees) and closed several of its high-profile studios, including Free Radical, which was working on a now-cancelled new installment of the beloved TimeSplitters series. . and Saints Row developer Volition. Embracer recently told investors that its restructuring program had reached “mature stages.”
