Borderlands 3 has proven to be quite the success for Gearbox Software since its release in 2019. As for Gearbox's publishing efforts, that's less clear. Regardless, few would have predicted that Gearbox would end up joining another company, yet that's exactly what's been announced. Officially confirmed on Tuesday evening, the Gearbox Entertainment Company is joining Embracer Group, with the acquisition valued at $1.3 billion.
In a prepared statement, Gearbox boss Randy Pitchford describes the acquisition as a "propellant for the exciting future we have planned." He lauds the vision of Embracer Group founder and CEO Lars Wingefors as "the most brilliant strategy for short, medium, and long-term success in this industry that I have ever encountered in my 30 years in this industry." Pitchford cites Embracer's decentralized structure and the diversity of its subsidiaries as examples of Wingefors strategy.
Wingefors has nothing but praise for Gearbox, as well. He describes Gearbox as one of the most creative developers in the world. He adds that the resources offered by Embracer will allow Gearbox to continue growing significantly in the future. Wingefors notably only mentions Gearbox's game development and not its publishing efforts. However, the press release does describe how Gearbox's North American publishing will be "significant" to Embracer moving forward.
Pitchford and Wingefors are likely referring to Embracer's global reach. Many gaming enthusiasts may be more familiar with Embracer's previous name, THQ Nordic AB. The holding company has spent the last five years specifically making many acquisitions. Studios like Satisfactory developer Coffee Stain Studios, Darksiders 3 developer Gunfire Games, Metro developer 4A Games, and most recently Shadow Warrior developer Flying Wild Hog. Embracer featured 58 studios spread across 45 different countries prior to acquiring Gearbox, though Gearbox is certainly its largest acquisition yet.
As for what this means for Gearbox, no immediately recognizable changes appear to have been made. Pitchford is being retained as the head of Gearbox and he's made no comment as to a shift in direction for the company. The development side of Gearbox has no currently announced upcoming project, though Borderlands 3 continues to be supported. The publishing side of Gearbox has two games currently in the works, in Tribes of Midgard and Homeworld 3. Both games continue development.
To say that Gearbox being acquired by Embracer is a surprise would be an understatement. Gearbox is a massive company, given both the size of its development team and its publishing apparatus. The value of the acquisition places the acquisition solidly within the most expensive acquisitions of all time, one of five made just within the past year. For comparison, Microsoft's acquisition of Minecraft studio Mojang in 2014 ran at $2.5 billion, while EA's acquisition of BioWare in 2007 was just $775 million.
Expect further updates regarding Gearbox and Embracer in the months and years to come.