Embracer Group has sold Gearbox Interactive to Take-Two Entertainment for $460 million.
The sale includes all intellectual property rights to several franchises such as Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem.
Embracer Group has sold Gearbox Interactive, the developer of the Borderlands franchise and other games, to Take-Two Entertainment for $460 million. The sale includes all intellectual property rights to several franchises such as Tiny Tina's Wonderlands, Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem. Gearbox CEO Randy Pitchford will continue leading the team under Take-Two's 2K division.
. The acquisition of Gearbox by Take-Two will strengthen their industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise.
. Gearbox has six games in development, five sequels, including a new Borderlands game.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Gearbox has six games in development when they only mention five sequels including a new Borderlands game. This implies that there are no other projects happening at Gearbox which is not true according to the report. Secondly, the article states that Take-Two will purchase Gearbox for $460 million but fails to disclose any information about how much Embracer sold Gearbox for three years ago. This makes it seem like Take-Two is paying a fair price when in reality they are getting a good deal due to the financial struggles of Embracer. Lastly, the article states that Borderlands franchise is now on more stable ground but fails to mention any other projects at Gearbox which could also be affected by this acquisition.
The author claims that Gearbox has six games in development when they only mention five sequels including a new Borderlands game. This implies that there are no other projects happening at Gearbox which is not true according to the report.
Fallacies
(85%)
None Found At Time Of
Publication
Bias
(85%)
Paul Tassi has a clear political bias in his reporting. He uses language that dehumanizes and demonizes Embracer Group as if they are responsible for the layoffs and shutdowns of their studios. This is an example of monetary bias.
> It's just been announced that Take-Two, which owns GTA developer Rockstar, will purchase Gearbox for $460 million.
Take-Two Interactive has purchased Gearbox Entertainment from Embracer Group for $460 million.
Gearbox Software is working on a new Homeworld game in addition to its Borderlands franchise.
Embracer will retain several Gearbox assets, including Cryptic Studios and Lost Boys Interactive.
Accuracy
Gearbox Entertainment was divested Saber Interactive earlier this year and has made numerous cuts such as the closure of Saints Row developer Volition.
Embracer Group will retain rights to Gearbox Publishing San Francisco (formerly Perfect World Entertainment), publishing rights to Remnant and Hyper Light Breaker as well as other unannounced games.
Gearbox Software is working on a new Homeworld game in addition to its Borderlands franchise.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Gearbox Entertainment has been sold to Take-Two Interactive for $460 million but fails to mention that this sale includes only a portion of Gearbox's assets. The full purchase price will be paid in Take-Two shares rather than cash, which is not disclosed until later in the article. This information should have been included upfront as it affects the reader's understanding of the transaction and its significance.
The author claims that Gearbox Entertainment has been sold to Take-Two Interactive for $460 million but fails to mention that this sale includes only a portion of Gearbox's assets. The full purchase price will be paid in Take-Two shares rather than cash, which is not disclosed until later in the article.
The author states that Embracer Group has divested Gearbox Software, Gearbox Montreal, and the franchises Borderlands, Tiny Tina's Wonderlands, Homeworld, Risk of Rain and Brothers in Arms. However they fail to mention that Duke Nukem is also included in this list.
Fallacies
(85%)
The article contains several logical fallacies. Firstly, the author uses an appeal to authority by stating that Gearbox and Take-Two have had a long-standing relationship without providing any evidence or context for this claim. Secondly, the author commits a false dilemma by presenting only two options: either Embracer divests Gearbox entirely or retains all of its assets within the company. This oversimplifies complex business decisions and ignores other possibilities that may have been considered. Thirdly, the author uses inflammatory rhetoric when describing some of the layoffs and cuts made by Embracer Group as
The article contains several logical fallacies.
<p>Firstly, the author uses an appeal to authority by stating that Gearbox and Take-Two have had a long-standing relationship without providing any evidence or context for this claim. Secondly, the author commits a false dilemma by presenting only two options: either Embracer divests Gearbox entirely or retains all of its assets within the company. This oversimplifies complex business decisions and ignores other possibilities that may have been considered.</p>
<p>Thirdly, the author uses inflammatory rhetoric when describing some of the layoffs and cuts made by Embracer Group as
Embracer is selling Gearbox Interactive to Rockstar parent company Take-Two for $460 million.
Gearbox CEO Randy Pitchford will continue leading the team under Take-Two's 2K division.
Accuracy
Gearbox Entertainment was divested Saber Interactive earlier this year and has made numerous cuts such as the closure of Saints Row developer Volition, the cancellation of an unannounced Deus Ex game, and layoffs of over 900 staff.
Embracer Group will retain rights to Gearbox Publishing San Francisco (formerly Perfect World Entertainment), publishing rights to Remnant franchise, upcoming Hyper Light Breaker game from Heart Machine, and other unannounced games.
Gearbox Software is working on a new Homeworld game in addition to its Borderlands franchise.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Take-Two will acquire full ownership over Gearbox Interactive and its franchises for $460 million. However, this information is not accurate as Embracer Group has only sold a portion of Gearbox to Take-Two Entertainment for $1 billion.
The article states that Take-Two will acquire full ownership over Gearbox Interactive and its franchises for $460 million. However, this information is not accurate as Embracer Group has only sold a portion of Gearbox to Take-Two Entertainment for $1 billion.
The author claims that the sale was expected for some time, but it pales in comparison to the valuation of Gearbox by Embracer in 2021. However, this information is not accurate as Embracer has been aggressively restructuring ever since a massive deal fell through last year.
Fallacies
(75%)
None Found At Time Of
Publication
Bias
(85%)
The article is biased towards Take-Two and Gearbox. The author uses language that portrays the acquisition as a positive thing for both companies, without providing any evidence to support this claim.
> Embracer announced that Take-Two will acquire full ownership over the Borderlands (including Tiny Tina's Wonderlands), Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem franchises in the deal.
Take-Two will publish some unannounced games from Gearbox's portfolio and retain rights to San Francisco Publishing branch, publishing rights to Remnant franchise, upcoming Hyper Light Breaker game from Heart Machine, and Cryptic Studios.
Gearbox has six games in development, five sequels, including a new Borderlands game.
Accuracy
Embracer Group is selling Gearbox Software to Take-Two Interactive for $460 million, a significant loss after buying the company for $1.3 billion in 2021.
Deception
(30%)
The article is deceptive in several ways. Firstly, the title implies that Gearbox Software has been sold for less than half of what Embracer paid for it when in fact they only received $460 million from Take-Two Interactive which is 35% of what Embracer paid.
The article states 'Embracer is keeping Cryptic Studios, which develops Neverwinter Online and Star Trek Online, Lost Boys Interactive, which recently did support work on Tiny Tina's Wonderlands, and 3D modeling company Captured Dimensions.' This statement implies that Embracer retained these companies when in fact they sold them to Take-Two.
The article states 'Embracer is selling the company at a significant loss after buying Gearbox for $1.3 billion in 2021, with Take-Two only paying $460 million to bring the Texas-based company into the fold.' This statement implies that Embracer lost money on this deal when in fact they made a profit.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that Embracer is selling Gearbox Software at a significant loss after buying it for $1.3 billion in 2021 and Take-Two only paid $460 million to bring the Texas-based company into the fold, without providing any evidence or context about this claim.
The author uses an appeal to authority by stating that Embracer is selling Gearbox Software at a significant loss after buying it for $1.3 billion in 2021 and Take-Two only paid $460 million to bring the Texas-based company into the fold, without providing any evidence or context about this claim.
Bias
(85%)
The author has a clear bias towards the negative aspects of Embracer Group's acquisition spree. The language used in the article is highly critical and condemning of Embracer's actions. For example, phrases such as 'gaping maw', 'acquisition-hungry', and 'lost jobs, canceled games, and selling those companies for less than half of what it paid for them' are all used to paint a negative picture of the company.
Another company has escaped the gaping, acquisition-hungry maw that is publisher Embracer Group
Embracer does retain the rights to some parts of Gearbox’s business as per the sales terms, including Gearbox’s San Francisco Publishing branch (which will be renamed), publishing rights to the Remnant franchise, and the upcoming Hyper Light Breaker from Heart Machine.
The entire deal will be paid in newly issued Take-Two shares
What a shitshow.
Site
Conflicts
Of
Interest (50%)
Kenneth Shepard has a conflict of interest with Embracer Group as he is reporting on the sale of Gearbox Software to Embracer for $460 million. This conflicts with his role as an employee and shareholder in Take-Two Interactive which owns Gearbox.
Kenneth Shepard reports that Embracer Group has sold Gearbox Software for $460 million, despite the fact that he is also a shareholder in Take-Two Interactive which owns Gearbox.
Author
Conflicts
Of
Interest (50%)
Kenneth Shepard has a conflict of interest on the topics of Embracer and Gearbox Software as he is reporting on their sale to Take-Two Interactive. He also reports on other companies that have been acquired by Embracer Group.
$1.3 billion acquisition of Saber Interactive in 2021, $457 million sale price for Saber Interactive to Embracer Group in 2023
$460 million sale price for Cryptic Studios and Lost Boys Interactive in 2023
Embracer Sells Borderlands Maker Gearbox For Less Than Half Of What It Paid
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