FX.co ★ Take-Two Interactive To Buy Gearbox Entertainment For $460 Mln In All-stock Deal

Take-Two Interactive Software, Inc., a company specializing in interactive entertainment, has announced its agreement to purchase The Gearbox Entertainment Company. This acquisition, agreed upon with Embracer Group AB (a Swedish video game and media holding conglomerate), is valued at $460 million, and structured as a cash-free, debt-free all-stock transaction.

The full value of the transaction will be paid in newly issued shares of Take-Two, and its price is determined based on the average closing price per share on the Nasdaq Global Select Market over the five trading day period coming to an end immediately prior to the closing date, as per details from the company's statement.

Through this acquisition, Take-Two will gain ownership of Gearbox's considerable intellectual property portfolio. This portfolio includes popular franchises such as Borderlands and Tiny Tina's Wonderlands, along with Homeworld, Risk of Rain, Brothers in Arms, Duke Nukem, and other avenues that Gearbox is planning for the future.

This deal is set to officially conclude in the first quarter of Take-Two's 2025 fiscal year.

In a statement regarding this deal, the CEO of Take-Two, Strauss Zelnick, stated, "This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox's exciting initiatives."

In regard to legal services and advisory, both KPMG and Deloitte are providing financial and tax advice while the legal counsel is being offered by Willkie Farr & Gallagher LLP.