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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.
This is actually new. They very rarely shut down studios until last month.
When THQ fell apart a about a decade ago, they bought the trademark and were doing business as THQ Nordic for quite a while.
Changed their name to Embracer a few years ago for clarity because, confusingly, one of their publishing arms is THQ Nordic GmbH.
As THQ Nordic (and later Embracer), they’ve been buying up studios (and IPs) for years. Being a holding company meant they were relatively hands off when it comes to development.
Being bought by them actually majorly increased job security, because they tended to just let studios do their shit, and kind of “understood” that a lot of their studios focus on relatively niche audiences, so they didn’t mind taking a financial hit here and there.
All that really mattered was whether or not the IP in general was profitable.
Then they had some sort of deal fall through or something earlier this year and that’s when things got a little shaky. Basically, they lost a couple billion dollars and now need to make “cost-saving measures”.
Now the commercial failures and lack of interest in certain IPs means less job security than it did about a year ago.
This makes me worried about Eidos Montréal and Crystal Dynamics. Particularly Deus Ex, since it was looking like Eidos might eventually get to finish its Human Revolution/Mankind Divided trilogy.
Their strategy was always diversifying in ways that other big publishers stopped diversifying, buying old neglected and mismanaged IPs for pennies on the dollar. If this strategy doesn’t work, then I weep for what video games could have been, because this lack of diversification is why I can’t get a decent racing game or first person shooter anymore.
Yeah, I was really happy when they got Eidos and Crystal Dynamics out of Square’s hands. Deus Ex continuation finally looked like a possibility.
Losing Eidos would be especially bad for those of us who are fans of immersive sims.
And with Deep Silver, they excelled in giving us the great Eurojank RPGs we know and love (I’ll still die on the hill that Risen is an entertaining trilogy, probably because of the major tone shift after the first game).
Did not know they started as thq Nordic etc thanks for info. I tried looking them up a while ago but couldn’t find anything on it. Thnaks
Wikipedia is your friend for quick information: https://en.wikipedia.org/wiki/Embracer_Group
Beats Google very often, in my experience.
I always treat Wikipedia as a first stop for a general overview under the caveat that not all information may be accurate or complete. From there, I typically use google to look up more info on specific events and such, or sometimes check the referenced sources if they’re available.
Exactly what I do! I just wanted to keep my previous comment short.
That is reasonable. Short comments are easier to digest and quicker to write.
Unfortunately, I am not a particularly reasonable person.