Following previous reports suggesting that Embracer Group was contemplating the sale of Gearbox, the studio behind Borderlands, as part of its ongoing restructuring efforts, recent claims indicate that a sale to a third party is nearing completion.
According to sources cited by Kotaku, Gearbox CEO and co-founder Randy Pitchford informed employees last year about three potential scenarios for the studio’s future: remaining with Embracer, being sold, or pursuing independence through financing a buyout.
However, Pitchford reportedly updated staff earlier this week, revealing that a decision had been reached regarding Gearbox’s fate, with further details expected to be disclosed next month.
Kotaku reports that Gearbox is poised to be sold to an undisclosed buyer, with the sale process currently in its final stages.
While Embracer Group, which acquired Gearbox for $363 million in 2021, did not respond to Kotaku’s inquiries, Pitchford refrained from providing specifics, stating, “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 news of Gearbox’s potential sale follows recent information from Bloomberg’s Jason Schreier, indicating that Embracer Group is also planning to sell Saber Interactive, the publishing group behind World War Z and Snowrunner, in a deal valued at up to $500 million – a figure slightly below the $525 million acquisition cost in 2020.
If these reported sales proceed as anticipated, they would mark the latest developments in Embracer Group’s restructuring initiative, which was launched last year following the collapse of a significant $2 billion strategic partnership in May.
Since then, Embracer has undergone workforce reductions, laying off eight percent of its employees – totaling 1,387 individuals – and shuttering several prominent studios, including Free Radical, known for its work on the now-canceled TimeSplitters project, and Volition, the developer behind the Saints Row series. Embracer recently informed investors that its restructuring program has reached an advanced stage.
