Embracer Group AB (publ) (OM:EMBRAC B) bought Borderlands maker The Gearbox Entertainment Company, Inc. for $1.3 billion back in early 2021 amid an unprecedented acquisition spree that?s since turned into a financial disaster. Now, just three years later, Kotaku has learned that Gearbox is closer than ever to being sold out from under what is arguably the most hated company in gaming. Gearbox Chief Executive Officer and Co-Founder Randy Pitchford held a town hall with staff earlier this week in which he told employees that a decision had been made regarding the studio?s future, with more information to be shared next month, according to two sources familiar with the meeting.

For months now Pitchford has told developers at Gearbox that there were three possible scenarios: stay with Embracer, sell to someone else, or finance a buyout and go back to being independently run. Kotaku understands that the decision was made to sell, and a deal is in the late stages of being finalized. Embracer did not immediately respond to a request for comment.

Pitchford sent Kotaku the following statement: I?m delighted that what we might be up to is interesting enough to people that you want to make a story about us for your readers. I?m honored and humbled that our company is a topic of rumor, speculation, and discussion. As always, we will be thrilled to share whenever we have projects to announce or news to share as we work hard towards our mission to entertain the world.

Rumors of a sale first began swirling last September after Reuters reported that Embracer was weighing whether to sell the crown jewel in its crumbling studio empire following the loss of a reported $2 billion in financing. That money was supposed to come from a Saudi-backed game investment fund, according to a report by Axios. Without the extra capital, Embracer imposed a brutal cost-cutting regime on many of its recently acquired studios which resulted in layoffs as well as entire closures.

?There are many options under consideration, including Gearbox?s transfer, taking Gearbox independent, and others,? Gearbox chief communications officer Dan Hewitt told staff in an email obtained by Bloomberg in September after the Reuters story first broke. ?Ultimately, we?ll move ahead with whichever path is best for both Gearbox and Embracer".