Archive link: http://archive.today/cxPph
Embracer is considering options for its U.S. game developer Gearbox Entertainment including a sale as Europe’s largest gaming company looks to shore up its finances, three people familiar with the matter told Reuters.
Embracer is weighing selling the unit, which is known for first-person shooter game Borderlands, after receiving interest from third parties, two of the people said.
Embracer, majority owned by founder Wingefors, purchased Gearbox in February 2021 in a deal that valued the business at up to $1.4 billion at the time.
Gearbox marketing materials are already available for potential buyers, which consist mainly of international gaming groups, said two of the people.
The sources, who requested anonymity as the matter is confidential, cautioned a deal may not happen.
[removed]
Embraer because of the decentralized studio model
How is Embracer group a decentralized studio model? When ever I look them up I don’t get much information. I just hear them buying studios then shutting them down.
deleted by creator
Their strategy was always diversifying in ways that other big publishers stopped diversifying, buying old neglected and mismanaged IPs for pennies on the dollar. If this strategy doesn’t work, then I weep for what video games could have been, because this lack of diversification is why I can’t get a decent racing game or first person shooter anymore.
deleted by creator
Did not know they started as thq Nordic etc thanks for info. I tried looking them up a while ago but couldn’t find anything on it. Thnaks
[removed]
I always treat Wikipedia as a first stop for a general overview under the caveat that not all information may be accurate or complete. From there, I typically use google to look up more info on specific events and such, or sometimes check the referenced sources if they’re available.
Exactly what I do! I just wanted to keep my previous comment short.
That is reasonable. Short comments are easier to digest and quicker to write.
Unfortunately, I am not a particularly reasonable person.
Each publisher operates independently. So far, to my knowledge, they’ve shut down studios that were spun up to work that $2B deal that fell through; and Volition, who haven’t made a hit game in a decade.
Seems sorta weird they’d be looking to offload them for financial reasons. Gearbox seems like it’d be one of their more profitable studios.
after receiving interest from third parties
Someone came along and said they’d like to buy them. Perhaps at an attractive offer given the deal that fell through or perhaps at an even higher price than Embracer paid for it. Anyone would consider a sale at a decent price if someone approached them with the offer.
Based off the article, it sounds like it was purchased quite recently as well. My personal guess is Embracer was buying up studios faster than it could support, counting on getting more funding down the line. Then Embracer had a deal fall through and realized they were laden with debt and had to drop the load.
Maybe Gearbox was giving the worst return on investment since it was such an expensive purchase which made it the prime target to sell.
You think? The last game they put out was that Tiny Tina’s Wonderlands one, and I don’t think it did gangbusters.
They basically have one IP and it keeps getting staler and staler.
Gearbox is also a publishing arm, which recently put out Remnant II, and they seem to have a stake or ownership in Risk of Rain, Bulletstorm, and Torchlight.
