Take-Two Seals $460 Million Deal to Own Gearbox Entertainment: What This Means for Gaming

Take-Two Interactive Software has officially confirmed its acquisition of Gearbox Entertainment, a major move set to reshape the gaming landscape. The all-stock transaction values Gearbox at $460 million and marks a significant expansion of Take-Two’s creative powerhouse, specifically strengthening 2K’s development capabilities.

The Deal: What’s Changing Hands

This acquisition represents far more than just a studio buyout. Take-Two is acquiring complete ownership of Gearbox’s entire intellectual property portfolio, which includes some of gaming’s most beloved franchises. The crown jewel is the Borderlands series—a powerhouse that has generated billions in revenue. Alongside it comes Tiny Tina’s Wonderlands, which carved out its own dedicated fanbase.

But that’s not all. The deal also brings Homeworld, Risk of Rain, Brothers in Arms, and the iconic Duke Nukem franchise under Take-Two’s umbrella. These aren’t just legacy properties; they represent decades of creative output and brand recognition that most studios can only dream of.

Who Owns Gearbox Now? The Integration Plan

Randy Pitchford, Gearbox’s founder and CEO, will continue leading the company as it transitions into a full subsidiary of 2K under Take-Two. This isn’t a typical acquisition where leadership gets replaced—Pitchford and his management team are staying put, which signals Take-Two’s confidence in the existing structure.

Gearbox will operate as a dedicated studio within 2K, maintaining its three development centers in Frisco, Texas; Montreal, Canada; and Quebec City, Canada. The move consolidates Take-Two’s internal development capabilities while keeping Gearbox’s creative independence largely intact.

Six Projects in the Pipeline

At the time of this announcement, Gearbox had six major interactive entertainment projects under development, including five sequels. Two of these sequels belong to the Borderlands and Homeworld franchises—projects already in active development with 2K. The portfolio also includes at least one new intellectual property that’s still under wraps.

Take-Two’s leadership has emphasized that this acquisition opens doors to invest in entirely new franchises and expand existing ones in ways that wouldn’t have been possible before.

Strategic Rationale: Why This Matters for Take-Two

Strauss Zelnick, Take-Two’s Chairman and CEO, framed the acquisition as a natural evolution: strengthening the company’s roster of owned intellectual property and consolidating creative talent that’s spent nearly two decades collaborating successfully.

The relationship between Gearbox and Take-Two/2K spans back years. They’ve worked together on every iteration of the Borderlands franchise, demonstrating a proven track record of collaboration. David Ismailer, President of 2K, highlighted this history: “We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series.”

By bringing Gearbox fully into the fold, Take-Two eliminates the middleman arrangements that previously governed their partnership. This creates opportunities for deeper integration, faster decision-making, and more ambitious projects.

The Broader Impact on Game Development

This acquisition reflects a broader industry trend: major publishers consolidating creative studios and IP ownership. For Take-Two, it represents a calculated bet that owning Gearbox’s talent and franchises will generate stronger returns than maintaining an arm’s-length partnership.

The deal is expected to close during Take-Two’s Fiscal Year 2025 (which ends June 30, 2024), pending customary regulatory approvals and closing conditions. The consideration consists entirely of newly issued Take-Two common stock, calculated by dividing the $460 million purchase price by the average closing price during the five trading days before closing.

What This Means Going Forward

For gamers, the implications are straightforward: the next generation of Borderlands games, Homeworld sequels, and other Gearbox projects will now have the full backing and resources of one of the world’s largest interactive entertainment companies. The increased financial benefits and integrated operational structure should accelerate development timelines and expand the scope of what these franchises can achieve.

For the industry, it’s a reminder that IP ownership and internal talent consolidation remain central to survival and growth in AAA game development.