Last Week’s Acquisition of Gearbox Software by Take-Two
Last week, Embracer Group made headlines when it announced the sale of Gearbox Software to Take-Two, the publisher behind Grand Theft Auto, for a whopping $460 million. However, the aftermath of this deal saw some unfortunate news for certain Gearbox employees who were let go from the company shortly after the acquisition.
Embracer Confirms Employee Departures
In response to inquiries from Eurogamer, Gearbox has confirmed that a number of employees have indeed been let go, although the company was quick to clarify that those affected individuals are not directly involved in the development of any upcoming games. Gearbox made it known last week that they are currently working on six different titles, including a new installment in the popular Borderlands franchise.
“As we continue on our mission to entertain audiences worldwide, we appreciate the interest shown in our talent and capabilities,” stated Gearbox in a released statement. “Embracer Group will provide updates on the restructuring efforts that have impacted certain areas of Gearbox today, which are unrelated to the ongoing game development at Gearbox Software.”
Employee Reactions on Social Media
While Gearbox has chosen not to disclose the exact number of staff members who were let go, several employees took to social media platforms following the announcement of the sale to share news of their departures. Among them, Gearbox’s PR manager Jennifer Locke revealed on Twitter that she and many others were affected by the recent changes, as reported by Eurogamer.
Embracer’s Restructuring Efforts
Embracer’s decision to sell Gearbox to Take-Two comes in the wake of a previous acquisition in 2021, where they purchased the company for $1.3 billion. The recent move is part of Embracer’s ongoing strategy to cut costs following the collapse of a $2 billion deal with Saudi Arabia-backed Savvy Games Group last year. In an effort to recover from this setback, Embracer has been selling off studios, shutting down operations, and laying off employees as part of a large-scale restructuring process.
[Source: Eurogamer]