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Embracer reportedly considering selling Borderlands developer Gearbox

UPDATE: Gearbox reportedly tells staff "there are many options under consideration".

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UPDATE 5.40pm: Bloomberg's Jason Schreier reports that Gearbox has today emailed employees confirming Embracer Group is, at the very least, considering parting ways with the Borderlands studio - although a specific course of action is yet to be decided on.

"The base case is that Gearbox remains a part of Embracer," Gearbox chief communications officer Dan Hewitt told staff in an email 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," Hewitt added, "but there will be a lot of speculation in the coming weeks."

ORIGINAL STORY 3.19pm: Gearbox is reportedly the latest studio to be affected by Embracer Group's restructuring efforts.

In June, Embracer announced a "comprehensive restructuring programme" to help recover from its large spending spree over recent years and a 40 percent drop in share price following a report of a failed "major strategic partnership" with Savvy Games Group, which is backed by the Saudi Arabian government.

As part of the restructuring, Saints Row developer Volition Games was shut down "effective immediately" at the end of last month. A new report from Reuters claims that Borderlands developer Gearbox will be one of the next studios Embracer sheds.

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Embracer is reportedly working with investment banks Goldman Sachs and Aream & Co to explore the option of a sale, and sources say the company has already received "interest from third parties" in acquiring Gearbox.

Share prices in Embracer have since turned positive following the news.

Gearbox was acquired by Embracer in 2021. Sales of its most recently developed game, New Tales from the Borderlands, were low according to publisher Take-Two, but fellow Borderlands spin-off Tiny Tina's Wonderlands exceeded Gearbox's expectations and CEO Randy Pitchford said "future experiences" were already in development a year ago. As a publisher, Gearbox is set to release Hyper Light Breaker and Homeworld 3 in early 2024.

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