Take-Two Interactive to Acquire ‘Borderlands’ Developer Gearbox for $460 Million

Take-Two Interactive has acquired video game developer Gearbox, the maker of the “Borderlands” franchise, from Embracer Group for $460 million.

New York-based video game holding company Take-Two Interactive Software is acquiring Borderlands developer Entertainment Company from Embracer Group for $460 million. According to a Take-Two release, the deal should close in June.

The acquisition makes sense, as Take-Two is the publisher of Gearbox’s Borderlands games. The companies are already collaborating on the next game in the hugely popular series, which was recently adapted as a live-action film set to hit theaters on August 9. The developer will operate as part of Take-Two’s 2K brand, where Gearbox Founder and CEO Randy Pitchford will continue to lead the unit.

As part of the deal, Take-Two will acquire Gearbox IP, including “Borderlands” and “Tiny Tina’s Wonderlands” franchises, games published by Take-Two’s 2K Games, as well as “Homeworld,” “Risk of Rain,” “Brothers in Arms” and “Duke Nukem.”

Currently, Gearbox has six “key interactive entertainment projects in various stages of development,” per Take-Two, which includes five sequels, two from “Borderlands” and “Homeworld” universes, and at least one “exciting new intellectual property,” all of which have been acquired in the sale.

According to Take-Two chairman and CEO Strauss Zelnick:

“Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise,This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox’s exciting initiatives.