Just three years ago, the company struck deals worth up to $1.3 billion.
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Gearbox Entertainment Company, the Frisco-based developer of popular video games such as the Borderlands series, will become part of industry giant Take-Two Interactive Software Inc.
New York City-based Take-Two announced on March 28 that it would pay $460 million for Gearbox stock.
This will be a significant drop from 2021, when Swedish video game company Embracer Group AB agreed to acquire Gearbox for up to $1.3 billion.
As part of the transaction, Gearbox owners will be issued new shares of Take-Two (Nasdaq: TTWO) common stock.
Take-Two expects the transaction to close during the first quarter of fiscal 2025. That means closing by June 30, pending regulatory approvals and other closing conditions.
In addition to acquiring Gearbox's portfolio and intellectual property, Take-Two has acquired “six major interactive entertainment projects in various stages of development,” including sequels to the popular Borderlands and Homeworld series. ” while hinting at a new game in development.
According to the announcement, Take-Two leaders believe there are “increasing opportunities to invest in new projects and expand Gearbox's proven franchise.”
Gearbox will operate as a studio within Take-Two's 2K publishing label. Gearbox founder and CEO Randy Pitchford will remain at the top. In addition to its Frisco headquarters, Gearbox also operates studios in Montreal and Quebec City, Canada.
Founded in 1999, Gearbox is also the creator and distributor of game franchises such as “Duke Nukem,” “Brothers in Arms,” and “Tiny Tina's Wonderlands.”
