Take-Two Interactive Software, a company that makes video games, has agreed to buy The Gearbox Entertainment Company for $460 million. Instead of paying cash, Take-Two will give Embracer Group, the owner of Gearbox, newly created shares of Take-Two stock.
The number of shares Embracer Group gets will depend on the average price of Take-Two stock over the last five days of trading. The $460 million price tag assumes that Gearbox has no debt and no extra cash on hand, and that its working capital is at a normal level when the deal closes.
Take-Two expects to finish the acquisition sometime in the first quarter of its fiscal year 2025. However, the deal doesn’t include certain assets that Take-Two doesn’t see as essential to its business, like some publishing agreements with other companies.
Key Points:
- Acquisition Deal: Take-Two Interactive Software, a company listed on the NASDAQ stock exchange, has agreed to acquire The Gearbox Entertainment Company. This acquisition involves a significant financial transaction worth $460 million.
- Payment Method: Instead of using cash to buy Gearbox, Take-Two plans to issue new shares of its common stock. This means that Embracer Group, the current owner of Gearbox, will receive Take-Two stock as payment.
- Calculation of Shares: The number of shares that Embracer Group will receive depends on the average closing price of Take-Two stock over the last five trading days before the completion of the deal.
- Assumed Financial Situation of Gearbox: The $460 million price for Gearbox assumes that the company has no debt and no extra cash reserves. It also assumes that Gearbox’s working capital is at a normal level at the time of the acquisition’s completion.
- Expected Completion Time: Take-Two anticipates that the acquisition will be finalized during the first quarter of its fiscal year 2025. This indicates a timeline for the completion of the deal.
- Exclusions: Some assets of Gearbox, such as certain third-party publishing agreements and other non-core assets, will not be included in the acquisition. Take-Two has deemed these assets as non-essential to its core business operations.
This deal represents a strategic move by Take-Two to expand its portfolio and strengthen its position in the gaming industry by acquiring Gearbox, known for popular franchises like Borderlands.
About Take-Two Interactive Software
Based in New York City, Take-Two Interactive Software, Inc. is a prominent creator, distributor, and promoter of interactive entertainment enjoyed by audiences worldwide. Through brands like Rockstar Games, 2K, Private Division, and Zynga, we develop and release products primarily for console gaming systems, PC, and Mobile devices such as smartphones and tablets. Our offerings are distributed through various channels including physical retail, digital downloads, online platforms, and cloud streaming services. Take-Two Interactive’s common stock trades publicly on NASDAQ under the ticker symbol TTWO. Any trademarks and copyrights mentioned belong to their respective owners.
About Embracer Group
The Embracer Group stands as a global consortium of entrepreneurial entities within the gaming and entertainment sector. Employing a decentralized operational framework, it furnishes resources to empower entrepreneurs and teams, enabling them to realize their full potential. Synergies within the Group are cultivated through collaborative efforts and shared knowledge, leveraging the strength of its diverse array of businesses.
Headquartered in Karlstad, situated in the Swedish province of Värmland, the Embracer Group boasts a workforce exceeding 12,000 individuals spanning across more than 40 countries. With a history marked by a blend of organic growth and strategic acquisitions, the Group’s foundation is laid upon shared values such as trust, a forward-looking perspective, and a commitment to embracing diverse viewpoints. Together, stakeholders are actively shaping the trajectory of the Embracer Group.
About Gearbox Software
Gearbox Software is an award-winning, independent developer of interactive entertainment based near Dallas, Texas. Founded in February 1999 by game industry veterans, it has since distinguished itself as one of the most respected and recognized independent video game makers in the world. The passionate members of the Gearbox Software team share a common identity: they feel they were made to bring joy, fun, and happiness to customers through their craft.
Here are some key points about Gearbox Software:
- Franchise Creations:
- Borderlands: Gearbox Software is best known for creating the Borderlands franchise, which combines first-person shooting with role-playing elements in a unique and humorous post-apocalyptic setting.
- Brothers in Arms: The studio also developed the award-winning and best-selling Brothers in Arms series, known for its realistic portrayal of World War II combat.
- Duke Nukem and Homeworld: Gearbox Software acquired other major video game properties, including the Duke Nukem and Homeworld brands.
- Original Brands: In addition to licensed franchises, Gearbox Software has created original, owned, and managed brands.
- Deep Portfolio:
- The team manages a deep portfolio of licensed and internally produced ancillary products, including video games, comic books, action figures, apparel, art prints, fictional novels, non-fiction reference books, and linear media content for film and television.
- Mission:
- Gearbox Software’s mission is to entertain the world through their creative endeavors.
- They collaborate with smart, committed, and capable people who care about creativity, happiness, and making wonderful, engaging, and exciting things.
- Legacy:
- Over the years, Gearbox Software has created some of the most memorable and iconic franchises, characters, and experiences in video game history.
- Their legacy is defined by the entertainment they lovingly craft for the world.
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