General Gaming Reuters: Embracer working with Goldman Sachs to explore divestment options for Gearbox Entertainment (which they acquired in 2021 for $1.4 billion), Bloomberg corroborates as well

[Commissar SFLUFAN]

This company is in so much cash liquidity trouble that it's no longer even remotely amusing.

 

Exclusive: Sweden’s Embracer weighs options for Borderlands maker Gearbox Entertainment –sources | Reuters

WWW.REUTERS.COM

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Embracer is considering options for its U.S. game developer Gearbox Entertainment including a sale as Europe’s largest gaming company looks to shore up its finances, three people familiar with the matter told Reuters.

 

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Embracer (EMBRACb.ST) is considering options for its U.S. game developer Gearbox Entertainment including a sale as Europe’s largest gaming  company looks to shore up its finances, three people familiar with the matter told Reuters.

 

The maker of Tomb Raider video games, whose shares are traded in Stockholm, is working with Goldman Sachs and Aream & Co to explore a sale, the people said.

 

Embracer is weighing selling the unit, which is known for first-person shooter game Borderlands, after receiving interest from third parties, two of the people said.

 

Officials from Embracer and Goldman Sachs declined to comment. Aream did not respond to requests for comment.

 

 

[Keyser_Soze]

So they had no plan other than buy companies. What a shitshow.

[Commissar SFLUFAN]

Bloomberg (Jason Schreier) has corroborated the original Reuters report. 

 

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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 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."

 

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

 

 

[Commissar SFLUFAN]

While Gearbox/Embracer owns the Borderlands IP, Take-Two Interactive/2K Games has the "right of first refusal" for publishing any games set in the the Borderlands universe.

 

That's not exactly an attractive prospect for any parties that could potentially be interested in acquiring Gearbox.

[Keyser_Soze]

2 minutes ago, Commissar SFLUFAN said:

While Gearbox/Embracer owns the Borderlands IP, Take-Two Interactive/2K Games has the "right of first refusal" for publishing any games set in the the Borderlands universe.

 

That's not exactly an attractive prospect for any parties that could potentially be interested in acquiring Gearbox.

 

Unless it's 2K looking to acquire them.

[Commissar SFLUFAN]

5 minutes ago, Keyser_Soze said:

Unless it's 2K looking to acquire them.

 

That's the only publisher that could realistically acquire Gearbox.

[Brian]

4 minutes ago, Commissar SFLUFAN said:

 

That's the only publisher that could realistically acquire Gearbox.

And they know it. Expect low ball offers

[Commissar SFLUFAN]

5 minutes ago, Brian said:

And they know it. Expect low ball offers

 

They're gonna offer Embracer the M&A equivalent of a day-old ham and cheese sandwich for Gearbox.

[crispy4000]

Any outside deal would probably have to pay off 2K as well.  Or just let Borderlands die.  Which I'm sure Randy would be thrilled about.

[Commissar SFLUFAN]

13 minutes ago, crispy4000 said:

Any outside deal would probably have to pay off 2K as well.

 

Right - Take-Two/2K essentially have de-facto veto authority over any transaction with a third-party.

[Spawn_of_Apathy]

Maybe MS will buy Gearbox.  

[DPCyric]

They could have closed Gearbox and kept Volition instead 

[Brian]

Closing game studios and selling gearbox is a clear indication that Embracer’s end game will be LotR licensor and nothing else. 

[Keyser_Soze]

1 hour ago, DPCyric said:

They could have closed Gearbox and kept Volition instead 

 

They aren't going to be keeping much of anything here pretty soon.

[Commissar SFLUFAN]

Per Axios's Stephen Totilo:

 

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Embracer CEO Lars Wingefors says company is seeking outside investment for some projects to avoid some layoffs.

 

But also: "ultimatey we are making decisions to either restructure or downsize some teams and there will be a few cases of closures"

 

 

[Keyser_Soze]

48 minutes ago, Commissar SFLUFAN said:

Per Axios's Stephen Totilo:

 

 

 

On 9/11/2023 at 8:28 PM, Keyser_Soze said:

 

They aren't going to be keeping much of anything here pretty soon.