Embracer Considers Selling Gearbox Entertainment to Strengthen Finances
Embracer, Europe's largest gaming firm and the company behind the latest Tomb Raider installment, is mulling over selling its U.S. game development subsidiary, Gearbox Entertainment, according to insiders. The move comes as Embracer seeks to bolster its financial position. Sources say that investment banks Goldman Sachs and Aream & Co are aiding in the exploration of a potential sale.
Last year, Embracer expanded its portfolio by acquiring several game studios and IPs, including a new Tomb Raider title. The company is contemplating the sale of Gearbox, noted for its popular first-person shooter game Borderlands, after drawing interest from various third parties.
Both Embracer and Goldman Sachs opted not to comment on the matter, while Aream failed to respond to inquiries.
Following the news, Embracer's stock saw a 5% surge, closing at 27.40 SEK this past Monday. Earlier in June, the company unveiled a restructuring plan aimed at decreasing its net debt to under 10 billion SEK (903 million USD) by the end of the fiscal year, down from 16.7 billion SEK in June. These plans encompass studio shutdowns, project cancellations, and workforce reductions.
Acquired in February 2021, Gearbox was valued at up to 1.4 billion USD at the time of purchase. Marketing materials for Gearbox have been prepared for prospective buyers, predominantly international gaming groups.
The undisclosed sources urged caution, stating that a deal is not guaranteed. Gearbox recently released Remnant 2, which led the U.S. charts in July. Embracer had previously revealed a 2 billion USD "contracted development revenue" agreement last October, which fell through, causing a 40% plunge in its shares.
Source: Reuters