Embracer Exploring Sale of Borderlands Maker Gearbox Entertainment: Sources

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Image: Gearbox Software

Sources with Reuters have learned that Embracer Group is exploring a sale of Gearbox Publishing and Gearbox Software, the developer best known for the Borderlands looter-shooter series. According to the report, a number of third parties have already expressed interest in purchasing their parent company, Gearbox Entertainment, which was established in 2019 after the developer decided to branch out into publishing. Embracer purchased Gearbox in February 2021 in a deal that was said to be valued at up to $1.4 billion at the time.

The maker of a new Tomb Raider video game, whose shares are traded in Stockholm, is working with Goldman Sachs and Aream & Co to explore a sale, the people said. Embracer last year bought several development studios and the intellectual property rights to a number of games including a new Tomb Raider game.

In June Embracer’s announced a restructuring to reduce its net debt to less than SEK 10 billion ($903 million) by the end of its financial year from SEK 16.7 billion at the end of June. The plans, which include studio closures, cancelled projects and layoffs, follows what CEO Lars Wingefors described as a “challenging year” for the company.

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Tsing Mui
News poster at The FPS Review.

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