Take-Two Interactive Software Inc (NASDAQ:TTWO), the owner of video game publishers 2K and Rockstar, is set to purchase Gearbox Entertainment, the developer of the Borderlands series, for US$460 million.
Embracer Group, Gearbox’s current owner, said Take-Two will take ownership of franchises such as Homeworld, Risk of Rain, Brothers in Arms, Duke Nukem and of course Borderlands.
A deal is expected to be finalised in June this year and will see Take-Two also acquire Gearbox’s studios in Texas and Montreal.
It represents a sharp drop in value for Embracer, with the group having valued the developer at US$1.3 billion in 2021.
Embracer is expected to retain Gearbox-owned Cryptic Studios and Lost Boys Interactive as well as games like the Remnant franchise and Hyper Light Break, along with some that are unreleased.
Gearbox Publishing San Francisco will also remain in the control of Embracer, albeit under a new name.
Borderlands and other IPs taken by Take-Two will go under the 2K division but will be led by Randy Pitchford, Gearbox’s chief executive.
2K president David Ismailer said: “We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues.
“We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next instalment in the series.”