EMBRACER GROUP TO DIVEST GEARBOX ENTERTAINMENT

[ 28 March 2024 ]

Gearbox Entertainment has been sold to Take-Two Interactive Software by Embracer Group in a deal valued at USD 460 million (SEK 4.9 billion), marking the final structured divestment process for the Swedish video-game and media holding company. Embracer Group will retain selected companies including Gearbox Publishing San Francisco, to be renamed.

"Today's announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company." says Lars Wingefors, co-founder and CEO of Embracer.

"As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment." says Randy Pitchford, founder and CEO of Gearbox Entertainment.

Embracer Group is in the process of restructuring to strengthen its balance sheet and further reduce capital expenditure. The company owns 132 internal game development studios including Crystal Dynamics plus an extensive catalogue of over 900 owned or controlled franchises including Tomb Raider.

Embracer Group