Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The majority of Annapurna Interactive's workforce departed their parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.

Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its staff transition to the newly acquired entity.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous, and the sale resulted in widespread layoffs.

According to journalist Jason Schreier, the undisclosed buyer is reportedly Haveli Investments, an Austin-based private equity firm with investments in technology and gaming. Haveli has partnered with the former Annapurna employees to manage Private Division's existing 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 followed a breakdown in talks with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The future direction, name, and overall goals of the combined entity remain uncertain.

This merger underscores the current state of the gaming industry, characterized by widespread layoffs and studio closures in recent years. The absorption of one group of laid-off employees by another highlights the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.