Reports Indicate Gearbox, Maker of Borderlands, Is up for Sale by Parent Company Embracer Group
Borderlands developer Gearbox has reportedly been put up for sale by its parent company, Embracer Group. Following a failed $2 billion deal with Saudi Arabia government-funded Savvy Games Group earlier this year, Embracer Group has been looking to restructure its operations. This restructuring has involved cost-cutting measures, studio closures, and layoffs. Now, Gearbox, which was acquired just two-and-a-half years ago, is facing the possibility of being sold to interested third-party publishers described as “international gaming groups.”
While it’s not officially confirmed whether Gearbox will be sold, Embracer is actively exploring options for the studio’s future. In an email sent to Gearbox staff, Gearbox CCO Dan Hewitt stated that “the base case is that Gearbox remains a part of Embracer. However, there are many options under consideration, including Gearbox’s transfer, taking Gearbox independent, and others. Ultimately, we’ll move ahead with whichever path is best for both Gearbox and Embracer.”
Embracer Group has been known for its extensive series of acquisitions, bringing together well-known developers such as Crystal Dynamics, THQ Nordic, Deep Silver, and securing franchise rights to The Lord of the Rings and The Hobbit, among others. The fallout from the failed Savvy Games Group deal left Embracer dealing with significant debt.
Amidst this restructuring, Crystal Dynamics assured fans that it would have no impact on the development of the upcoming Tomb Raider game. Embracer Group is also behind the Star Wars: Knights of the Old Republic remake, which switched studios from Aspyr Media to Saber Interactive in August 2022.
This development comes after Embracer’s plans to create an MMO adaptation of The Lord of the Rings, developed by Amazon Games’ Orange County Studio. Embracer had five video games based on the Middle-earth franchise in development, including The Lord of the Rings: Gollum, which faced challenges and led to the closure of Daedalic Entertainment’s development division.