Summary
Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The acquisition follows a significant staff exodus from Annapurna Interactive in September 2024 after negotiations with CEO Megan Ellison failed.
Following a tumultuous 2024, Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its workforce depart. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and future of the studio initially unknown. The sale resulted in widespread layoffs.
According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, purchased Private Division. Haveli reportedly partnered with the former Annapurna staff to manage Private Division's existing game portfolio, including Tales of the Shire (slated for March 2025), the Kerbal Space Program, and an unannounced title from Game Freak.
Private Division's Restructuring Reflects Industry Trends
The departure of most Annapurna Interactive employees in September 2024 stemmed from failed negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains undisclosed.
This merger exemplifies the current gaming industry climate, characterized by widespread layoffs and studio closures in recent years. The integration of two groups of displaced game developers reflects the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.
