Report: Embracer may sell Gearbox Entertainment
Rainbow Studios staff also gets downsized due to the ongoing restructuring program
Embracer is considering the possible sale of Gearbox Entertainment.
As reported by MarketScreener, the sale of the Borderlands maker would be a part of the firm's restructuring program, announced in June.
Sources familiar with the matter said the firm is considering selling off the studio after receiving interest from third parties.
Embracer acquired Gearbox in a $1.3 billion deal in 2021.
Regarding the restructuring program, as reported by Game Developer, it has resulted in a downsizing at Rainbow Studios, developer of MX vs ATV Legends.
Developers affected by the decision shared the news on LinkedIn; the number of redundancies is unknown.
In a statement sent to the site, an Embracer representative said in part, "Each process will be managed locally on operative group level with focus on informing affected employees first, and on group level we will not comment on specific studios at this point in time."
Embracer's ongoing restructuring has seen layoffs at Gearbox Publishing; a week prior, Saints Row creator Volition Games announced its closure. Meanwhile, Campfire Cabal was shuttered earlier in August.