Embracer Group Looks to Sell Video Game Studio Gearbox

The game developer is best known for Borderlands,  which has generated more than $1 billion in revenue

(Bloomberg) — Swedish video-game conglomerate Embracer Group AB is looking to sell Gearbox Entertainment just two-and-a-half years after purchasing the studio for $1.3 billion. Gearbox will also explore other options including spinning it off, the company said in an email to staff Monday morning.

The Frisco, Texas-based game developer is best known for Borderlands, a video-game series that has sold 77 million copies and generated more than $1 billion in revenue. Reuters first reported the potential sale.

“The base case is that Gearbox remains a part of Embracer,” wrote Gearbox Chief Communications Officer Dan Hewitt in an email to staff seen by Bloomberg. “However, there are many options under consideration, including Gearbox’s transfer, taking Gearbox independent, and others. Ultimately, we’ll move ahead with whichever path is best for both Gearbox and Embracer.”

Embracer has spent the past few years snatching up game studios all across the world but this year began a period of reorganization following a failed $2 billion deal with Saudi Arabia’s gaming group. This month the company closed down Illinois-based game studio Volition and laid off staff all across its other divisions.

“Nothing has been decided yet, but there will be a lot of speculation in the coming weeks,” Hewitt wrote.

(Corrects location of the game developer in second paragraph.)

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