Embracer Group, a vast network of European developers and publishers that includes THQ Nordic and Deep Silver, announced today that it has swallowed the Gearbox. The gang behind Borderlands and Aliens: Colonial Marines is merging with Embracer to become the seventh operational group within the family. The deal is worth $ 363 million (£ 262 million) to start. Gearbox says this is cool and they are planning to grow.
Embracer is paying $ 363 million (£ 262 million) in cash and upfront shares to Gearbox. They say that up to another $ 1015 million (£ 734 million) in cash and shares could potentially follow if Gearbox meets its targets over the next six years.
Today’s announcement says that Gearbox’s plans as part of Embracer include “expanding talent in both studios, creating new Gearbox studios and expanding partnerships.” They say the merger “allows Gearbox to do more with its existing brands, create new brands and potentially undertake the merger and acquisition of another successful industry and entities and properties adjacent to the industry.” Dreaming big, then. Gearbox also has its own editorial arm today, remember.
Embracer (formerly known as THQ Nordic AB, and Nordic Games before that) has 60 in-house development studios now. They bought more than a dozen in the past six months, including Metro devs 4A Games and Shadow Warrior, Flying Wild Hog trailers.
Randy Pitchford will continue to lead Gearbox and sounds, oh, very professionally enthusiastic about Embracer’s CEO, Lars Wingefors.
“Lars’ vision of Embracer as an allied partner group, committed to fueling and accelerating the ambitions of a series of decentralized and successful entrepreneurial companies, while expanding the collective value and the advantages of diversification across the group it is the most brilliant strategy and design for short and medium and long term success in this sector that I have found in my 30 years in this sector “, said Pitchford. Well then.
It fills my heart with dread to see Embracer specifically mention Duke Nukem as one of the “critically acclaimed IPs” that “will stand out in Embracer’s vast IP portfolio”. Are they threatening to do a Duke Nukem Forever sequel? Didn’t that kill Duke dead from stone forever? Police, help, they are threatening me.
This news arrives days after the Battleborn servers shutdown, making Gearbox’s 2016 FPS totally impossible to play.
Update: 2K Games, the publishers of Borderlands and Battleborn, say they “are happy” with Gearbox and are still friends.
“The merger does not change 2K’s relationship with Gearbox or our role as publisher of Borderlands IP or any other project we are working on with the studio,” a spokesman said in a statement to RPS. “We look forward to continuing our long-term partnership with this incredibly talented team and offering many more exciting entertainment experiences for game fans around the world.”