It looks like Embracer Group isn’t done with shedding some of its relatively high-profile game studios. After it shuttered Saints Row developer Volition just a couple of weeks ago, it’s being reported that the company is now considering its options for Gearbox Software – the folks behind the Borderlands franchise and publisher of the recent, successful Remnant 2.
Reuters claims that Embracer is working with teams to explore selling Gearbox, according to sources familiar with the matter, who have also said that potential buyers including “international gaming groups” are already in communications and marketing materials for the studio are available, but a deal may not happen.
Exclusive: Sweden’s Embracer weighs options for Borderlands maker Gearbox Entertainment –sources https://t.co/CTDg3V5FK2 pic.twitter.com/6hv1phMqBm
— Reuters (@Reuters) September 11, 2023
Since this story broke overnight, Bloomberg has also reported that Gearbox is considering other options should a sale not be viable, including spinning the company off into a new one, among others, according to an internal email that the outlet has viewed.
“The base case is that Gearbox remains a part of Embracer,” writs Gearbox Chief Communications Officer Dan Hewitt in the email. “However, there are many options under consideration, including Gearbox’s transfer, taking Gearbox independent, and others. Ultimately, we’ll move ahead with whichever path is best for both Gearbox and Embracer.”
Embracer Group began a process of restructuring earlier this year after a failed deal (reportedly worth $2 billion USD) caused its share prices to tank, with studio closures and game cancellations the focus of its efforts to lean down its business and leverage its portfolio of IP – which includes the likes of Tomb Raider, Deus Ex and The Lord of the Rings.
