Frisco-based video game developer Gearbox acquired for $460 million

Take-Two Interactive acquires Gearbox Entertainment

Frisco-based video game studio Gearbox Entertainment Co., best known for its first-person shooter game “Borderlands,” is being acquired by New York entertainment company Take-Two Interactive Software, Inc. for $460 million.

U.S. videogame publisher Take-Two is purchasing the studio from Sweden-based Embracer Group to fortify its portfolio. The “Grand Theft Auto” franchise owner will take on Gearbox’s “Tiny Tina’s Wonderlands” franchises, “Homeworld,” “Risk of Rain,” and other games in the studio’s pipeline, according to a press release.

The Dallas-Fort Worth video game company’s most recent change of hands comes at a steep discount from its previous acquisition. Embracer’s 2021 deal had valued Gearbox at more than $1 billion.

The Swedish company has spent the past few years buying up studios all across the world but began a period of reorganization following a failed $2 billion deal with Saudi Arabia’s gaming group in 2023, according to Bloomberg.

The terms of the deal outline that Gearbox will operate as a studio within 2k, a subsidiary of Take-Two, and will continue to be led by founder and CEO of Gearbox Randy Pitchford.

The sale will help take the studio to the next level, Pitchford said.

“We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm’s length as partners,” Pitchford said in a statement. “I’m incredibly excited about what we can accomplish now that we’re fully aligned as one.”

Gearbox operates studios in Frisco, Montreal and Quebec City, Canada.

“With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling,” said David Ismailer, president of 2K.

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