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Embracer Group is reportedly weighing up options on what to do with Borderlands developer Gearbox Entertainment, including selling the US-based studio, a report from Reuters claims.
Published earlier today, the report states that three people familiar with the situation have told Reuters that a sale is on the table as Embracer Group “looks to shore up its finances”. Gearbox market materials are already reportedly available to view to potential buyers.
Two of Reuters’ sources claim that it’s mainly international gaming groups which have expressed interest but have also cautioned that a deal may not even happen. Representatives from Embracer Group and Goldman Sachs — the company working with the studio to explore a potential sale — have declined to comment to Reuters, with Aream & Co (an investment bank also involved in the deal) not responding to the request.
Embracer acquired Borderlands studio Gearbox Entertainment back in February 2021 for a staggering $1.35 billion, but the company has continued to bring in other developers, including Crystal Dynamics, Square Enix Montréal, and Eidos-Montréal.
But back in June 2023, Embracer announced a “restructuring program” which would include lay-offs following the collapse of a $2 billion deal, and at the beginning of September 2023, Saints Row developer Volition (which is one of the many studios under the Embracer umbrella) announced it was being shut down after 30 years.
Just a few weeks ago, Borderlands 3 Ultimate Edition was announced for Switch and is coming on 6th October.
What do you think of this news? Do you think Embracer has bitten off more than it can chew? Let us know in the comments.