(Speculative) Gearbox is likely to leave Embracer |UP|Embracer in final stages to sell Gearbox, announcement expected in March

[Gamernyc78]

Update...

Sources: Borderlands Studio Will Escape The Most Divisive Company In Gaming

Gearbox is leaving the Embracer fallout behind as devs wait for a answers on what’s next

kotaku.com

Gearbox CEO and co-founder Randy Pitchford held a town hall with staff earlier this week in which he told employees that a decision had been made regarding the studio’s future, with more information to be shared next month, according to two sources familiar with the meeting. For months now Pitchford has told developers at Gearbox that there were three possible scenarios: stay with Embracer, sell to someone else, or finance a buyout and go back to being independently run. Kotaku understands that the decision was made to sell, and a deal is in the late stages of being finalized.

 

[Gamernyc78]

Idk what Embracer’s end game was but doesn't seem to be working out.

 

[Evilnemesis8]

Idk what Embracer’s end game was but doesn't seem to be working out.

Their endgame was to amass a ridiculous amount of studios and IPs and then rely on a series of funding calls and investment deals as well as taking loans to bridge the gap between then and the time it would take for their new studios to finally release products to make revenue.
So yes, they took the most riskiest approach to growing for them to fall flat on their face as the COVID boom disappeared, loans more expensive and economies tanked.

Lars Wingefors and the other suits at Embracer essentially went all-in and hoped everything would work out.

It didn't.

 

[flaccidsnake]

Good to see this Nigerian email scam of a game publisher isn't going to liquidate some of these long-standing teams.

I wanted to know if Embrace made a profit selling them back their freedom at $500M. What I found in the acquisition announcement is ambiguous:

The purchase price includes an initial consideration of USD 150 million, plus an earn-out consideration, subject to fulfilment of agreed milestones, of a maximum USD 375 million.

Looks like they could've made a big profit

Embracer Group acquires Saber Interactive – initial consideration USD 150 million - Embracer Group

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION...

embracer.com

 

[Evilnemesis8]

Good to see this Nigerian email scam of a game publisher isn't going to liquidate some of these long-standing teams.

I wanted to know if Embrace made a profit selling them back their freedom at $500M. What I found in the acquisition announcement is ambiguous:

Looks like they could've made a big profit

Considering how much Saber grew from 2020 to now and Embracer would be on the hook for those expenses, it's probably not a lot tbh.

 

[Gamernyc78]

Good to see this Nigerian email scam of a game publisher isn't going to liquidate some of these long-standing teams.

I wanted to know if Embrace made a profit selling them back their freedom at $500M. What I found in the acquisition announcement is ambiguous:



Looks like they could've made a big profit

Embracer Group acquires Saber Interactive – initial consideration USD 150 million - Embracer Group

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION...

embracer.com

Interesting indeed.

 

[Gamernyc78]

Sources: Borderlands Studio Will Escape The Most Divisive Company In Gaming

Gearbox is leaving the Embracer fallout behind as devs wait for a answers on what’s next

kotaku.com

Gearbox CEO and co-founder Randy Pitchford held a town hall with staff earlier this week in which he told employees that a decision had been made regarding the studio’s future, with more information to be shared next month, according to two sources familiar with the meeting. For months now Pitchford has told developers at Gearbox that there were three possible scenarios: stay with Embracer, sell to someone else, or finance a buyout and go back to being independently run. Kotaku understands that the decision was made to sell, and a deal is in the late stages of being finalized.

 

[Evilnemesis8]

Sources: Borderlands Studio Will Escape The Most Divisive Company In Gaming

Gearbox is leaving the Embracer fallout behind as devs wait for a answers on what’s next

kotaku.com

Gearbox CEO and co-founder Randy Pitchford held a town hall with staff earlier this week in which he told employees that a decision had been made regarding the studio’s future, with more information to be shared next month, according to two sources familiar with the meeting. For months now Pitchford has told developers at Gearbox that there were three possible scenarios: stay with Embracer, sell to someone else, or finance a buyout and go back to being independently run. Kotaku understands that the decision was made to sell, and a deal is in the late stages of being finalized.

My god, the big industry news in the last 2 months have been INSANE, if you're not at least checking the internet once or twice a day you're going to miss things lmao.

 

[flaccidsnake]

Sources: Borderlands Studio Will Escape The Most Divisive Company In Gaming

Gearbox is leaving the Embracer fallout behind as devs wait for a answers on what’s next

kotaku.com

Gearbox CEO and co-founder Randy Pitchford held a town hall with staff earlier this week in which he told employees that a decision had been made regarding the studio’s future, with more information to be shared next month, according to two sources familiar with the meeting. For months now Pitchford has told developers at Gearbox that there were three possible scenarios: stay with Embracer, sell to someone else, or finance a buyout and go back to being independently run. Kotaku understands that the decision was made to sell, and a deal is in the late stages of being finalized.

I still feel like there's a better Borderlands to be made. After Battleborn, I wonder if they still have the sauce.

 

[Zzero]

Saber is the best run and highest quality of the big Embracer vg divisions. Glad to see they escaped with no cuts

The two EU divisions can fuck off back to being jank sweatshops, CDE can do work for hire and Gearbox... well... sounds like someone else will own them now.

 

[Zzero]

Also, for those who care, Saber was a unique acquisition because their ownership actually got class A Embracer stock in their deal and later brought more of it. So part of the sale price was probably a stock swap.

 

[Gamernyc78]

My son really loved Borderlands so I know he's hoping another comes.

 

[Nix]

Wonder who is buying them, Take Two maybe?

 

[flaccidsnake]

My son really loved Borderlands so I know he's hoping another comes.

we need one with shared world multiplayer like journey/destiny/division.

 

[Gamernyc78]

we need one with shared world multiplayer like journey/destiny/division.

Ahhhhh tht would be dope

 

[Wraith Phantom]

Idk what Embracer’s end game was but doesn't seem to be working out.

Not that difficult. The pandemic had a massive blow up in gaming/social media.

All other business were not making revenues as gaming social media during pandemic. A whole bunch of goofy execs ,investors shifted their money jump into gaming and Fucked it all up. See embracer. See PS with ridiculous quarterly targets. All these company's that jumped into gaming. Failed to understand that the pandemic numbers were never real ,never sustainable.

People say us regular folk dont know big business. Yet at consumer level we are always right when it comes to greed and what sells. We always right on what will flop.

 

[Gamernyc78]

Not that difficult. The pandemic had a massive blow up in gaming/social media.

All other business were not making revenues as gaming social media during pandemic. A whole bunch of goofy execs ,investors shifted their money jump into gaming and Fucked it all up. See embracer. See PS with ridiculous quarterly targets. All these company's that jumped into gaming. Failed to understand that the pandemic numbers were never real ,never sustainable.

People say us regular folk dont know big business. Yet at consumer level we are always right when it comes to greed and what sells. We always right on what will flop.

Mine was more a figure of speech and was more rhetorical but thnks for inputting lol

 

[Box]

Everyone either leaving or getting laid off what a shame

 

[Gediminas]

My son really loved Borderlands so I know he's hoping another comes.

It was leaked, that it is in development. 3rd was a success, Wonderlands also was great.
I like borderlands games a lot.

 

[Gediminas]

Not that difficult. The pandemic had a massive blow up in gaming/social media.

All other business were not making revenues as gaming social media during pandemic. A whole bunch of goofy execs ,investors shifted their money jump into gaming and Fucked it all up. See embracer. See PS with ridiculous quarterly targets. All these company's that jumped into gaming. Failed to understand that the pandemic numbers were never real ,never sustainable.

People say us regular folk dont know big business. Yet at consumer level we are always right when it comes to greed and what sells. We always right on what will flop.

That's not true, projections were nonsense, not the current state. If you look at the data, gaming doing as great as in covid time, just that growth never was going to last.
Yhis is just suits trying to sweeze every last penny out of devs and customers.