gearbox

The Embracer-Owned Gearbox Software Is Apparently Close To Being Sold Off

A deal is reportedly near-complete.

Following rumours late last year that the capsizing Embracer Group was looking to sell off one of its most prominent and expensive assets in publisher and developer Gearbox Software, which it purchased in 2021 for $1.3 billion USD, new reports from Kotaku claim that a sale is nearly completed and will be announced later this month.

Per Kotaku’s sources, a townhall was held with Gearbox staff earlier this week in which Gearbox CEO Randy Pitchford informed them that a decision had been made regarding the company’s future and will be communicated in March. Kotaku claims that said decision is indeed a sale of the company which is already in the “late stages” of being finalised.

While Embracer didn’t return Kotaku’s request for comment on these claims, Pitchford did provide them a very Pitchford-esque statement:

“I’m delighted that what we might be up to is interesting enough to people that you want to make a story about us for your readers. I’m honored and humbled that our company is a topic of rumor, speculation, and discussion. As always, we will be thrilled to share whenever we have projects to announce or news to share as we work hard towards our mission to entertain the world.”

“The base case is that Gearbox remains a part of Embracer,” Gearbox Chief Communications Officer Dan Hewitt reportedly wrote in an internal email late last year at a point when the company was weighing up its options, “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.”

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Embracer Group began a process of restructuring in 2023 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.