Embracer Group reportedly considering selling Gearbox just two years after purchase

In recent years, Embracer Group has been rapidly buying up development studios, swiftly becoming one of the largest companies in the gaming industry. However, the group's financial situation has been taking a turn, leading to an internal restructuring, resulting in the shutdown of studios like Volition. Now, Embracer may be considering selling off some of its studios, including Gearbox. 

Embracer Group acquired Gearbox Entertainment back in 2021, opening the door for Gearbox to pursue its ambitions of transitioning into a multimedia company. However, according to a Reuters report, Embracer is now considering selling off Gearbox to recoup some cash as it looks to offset accrued debt.

The sale is apparently only being considered at this stage after receiving interest from third-party companies. Embracer paid around $1.4 billion for Gearbox just two years ago, so it would be interesting to see what sort of price the studio fetches now if a sale does go ahead.

The list of suitors is said to consist of “international gaming groups”. Gearbox is one of several major purchases Embracer has made in the last couple of years. Aside from Gearbox, Embracer also picked up Eidos and Crystal Dynamics, along with their associated IP, and the company took a big swing by acquiring The Lord of the Rings in 2022.

If Gearbox is sold, the most notable suitor would likely be Take-Two Interactive. The publisher's subsidiary, 2K Games, has partial ownership over the Borderlands IP, which is Gearbox's biggest earner. However, nothing is set in stone at this stage.

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KitGuru Says: Embracer appears to have bit off more than it can chew. The company revived THQ only to repeat the same mistakes that led to that company's closure a decade ago, with a period of rapid growth followed by crippling debt and ‘restructuring'. Embracer does own some highly popular gaming IP at this point, so they may still be able to turn things around but it will certainly be difficult.  

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