Take-Two Interactive Acquires Gearbox Entertainment in $460 Million Deal

Take-Two Interactive Software, Inc., a prominent player in the interactive entertainment industry, has announced a definitive agreement to acquire The Gearbox Entertainment Company for $460 million. The acquisition, set to bolster Take-Two's portfolio of owned intellectual property, is poised to deepen the company's successful relationship with Gearbox Entertainment and enhance its financial profile through integrated operational structures.

The deal, structured entirely in newly issued shares of Take-Two common stock, underscores the strategic synergy between the two entities. The purchase price, determined by dividing the total amount by the average closing price per share on the Nasdaq Global Select Market over five days, reflects Take-Two's commitment to maximizing value for both companies' stakeholders.

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Gearbox Entertainment, known for its innovative and industry-defining entertainment experiences, brings to Take-Two an extensive portfolio of intellectual property. This includes ownership of acclaimed franchises such as Borderlands and Tiny Tina’s Wonderlands, along with titles like Homeworld, Risk of Rain, Brothers in Arms, Duke Nukem, and a promising pipeline of future projects.

The acquisition is expected to close during the first quarter of Take-Two’s Fiscal Year 2025, subject to customary closing conditions and regulatory approvals. It excludes certain non-core assets deemed irrelevant to Take-Two's core business operations.

According to Strauss Zelnick, Chairman and CEO of Take-Two, the integration of Gearbox Entertainment into the company's fold marks an exciting milestone. Zelnick believes the union will fortify Take-Two's creative talent pool and further leverage its resources across Gearbox's initiatives, driving long-term growth opportunities.

David Ismailer, President of 2K, expressed enthusiasm about the collaboration, citing Gearbox's integral role in past successes and the anticipation of future projects. Ismailer looks forward to partnering with Randy Pitchford and his team, particularly in advancing the Borderlands franchise.

Randy Pitchford, Founder and CEO of Gearbox Entertainment, echoed the sentiment, highlighting the alignment of visions between Gearbox and Take-Two. Pitchford sees the acquisition as a catalyst for Gearbox's evolution to the next level, leveraging the combined expertise and resources of Take-Two and 2K.

Under the acquisition agreement, Gearbox will operate as a studio within 2K, maintaining its leadership under Randy Pitchford and his management team. The addition of Gearbox's seasoned development team further enriches 2K's robust developer community, spanning across multiple locations in the United States and Canada.

Take-Two Interactive Software, Inc., headquartered in New York City, is renowned for its development, publishing, and marketing of interactive entertainment globally. With subsidiaries like Rockstar Games, 2K, Private Division, and Zynga, Take-Two delivers products across various gaming platforms, including consoles, PCs, and mobile devices.

The Gearbox Entertainment Company, LLC, headquartered in Frisco, Texas, has gained recognition for its creation and distribution of transmedia entertainment. Comprising subsidiaries like Gearbox Software, Gearbox Publishing, Gearbox Studio, and Gearbox Properties, the company has established itself through hit franchises and successful acquisitions like Duke Nukem and Homeworld.

Overall, the acquisition signals a strategic move by Take-Two Interactive to strengthen its position in the interactive entertainment market, tapping into Gearbox Entertainment's wealth of creative talent and intellectual property to drive future growth and innovation.