Rumors that Gearbox Entertainment might be for sale began last fall, but now some new reports say that the company could part from Embracer Group under a new sale deal.
According to a new report over at Kotaku, Gearbox CEO Randy Pitchford told a group of employees this week that there had been a decision on the company’s future. Options, it seems, were to stay with Embracer Group, to sell, or to work to take the company independent under a buyout. The report cites sources saying that the decision came down to selling the company.
Embracer Group bought Gearbox Entertainment back in 2021 for $1.3 billion. Embracer Group would go on to acquire numerous companies, with Gearbox one of their large deals. Since last year, however, after a sizable deal worth billions fell through, the company has been working on an ongoing reorganization process that has cost over 1,400 jobs (so far), closed down a number of studios, and is responsible for the cancellation of a number of projects, many of which had never been announced.
Gearbox became one of Embracer Group’s most significant subsidiaries, with Perfect World Entertainment falling under its publishing division. Cryptic Studios and others found themselves under Gearbox, though after one of the company’s layoff rounds in late 2023 those companies were then made subsidiaries under DECA Games.
Since Cryptic is now under DECA Games, it seems that, should Gearbox sell to a new owner, the company’s MMORPGs–Neverwinter, Star Trek Online, and Champions Online, likely remain under Embracer.
If the Gearbox sale does proceed as reported, we may hear something publicly later this month. Rumors of the company potentially being up for sale started last fall, alongside rumors that RuneScape developer Jagex was also potentially up for sale. Jagex was sold last month to a UK-US partnership for more than $1 billion. Now, Gearbox may be turning that corner itself.
It was also reported that Embracer-owned Saber Interactive is also working out a sale deal. Both of these companies heading elsewhere will likely help move Embracer’s plans for continued cuts forward too.
