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Randy Pitchford: The magic behind Gearbox’s merger with Embracer Group

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Gearbox Entertainment CEO Randy Pitchford said that selling his company to Embracer Group for up to $1.3 billion in cash and stock will be good for both gamers and his 550 employees.

The employees own 30% of Gearbox, the maker of the Borderlands action-RPG series, and they will be getting paid both upfront and over time, given how the deal’s structured. Their incentive is to create new games that players love.

The companies are referring to the deal as a merger, as it involves mostly stock transactions. Gearbox is only getting $188 million in cash and $175 million in stock upfront. The rest of it comes over six years if Gearbox meets