Archive link: http://archive.today/cxPph
Embracer is considering options for its U.S. game developer Gearbox Entertainment including a sale as Europe’s largest gaming company looks to shore up its finances, three people familiar with the matter told Reuters.
Embracer is weighing selling the unit, which is known for first-person shooter game Borderlands, after receiving interest from third parties, two of the people said.
Embracer, majority owned by founder Wingefors, purchased Gearbox in February 2021 in a deal that valued the business at up to $1.4 billion at the time.
Gearbox marketing materials are already available for potential buyers, which consist mainly of international gaming groups, said two of the people.
The sources, who requested anonymity as the matter is confidential, cautioned a deal may not happen.
Based off the article, it sounds like it was purchased quite recently as well. My personal guess is Embracer was buying up studios faster than it could support, counting on getting more funding down the line. Then Embracer had a deal fall through and realized they were laden with debt and had to drop the load.
Maybe Gearbox was giving the worst return on investment since it was such an expensive purchase which made it the prime target to sell.