Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. This follows a mass exodus from Annapurna Interactive in September 2024 after negotiations with CEO Megan Ellison failed.

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced a significant staff departure. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future initially unknown. The sale resulted in widespread layoffs.

According to Jason Schreier, Haveli Investments, an Austin-based private equity firm, is reportedly the buyer. Haveli and the former Annapurna staff have allegedly partnered to manage Private Division's remaining titles, including Tales of the Shire (slated for March 2025), Kerbal Space Program, and an unannounced Game Freak project.

Private Division's Restructuring Reflects Industry Trends

The September 2024 departure of most Annapurna Interactive employees followed a breakdown in negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's acquisition retained about twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The new entity's name, mission, and plans for new IP remain undisclosed.

This merger mirrors the broader gaming industry's recent instability, marked by substantial layoffs and studio closures. The acquisition of Private Division by a team of former employees from another struggling company highlights the industry's cutthroat environment, driven by investor hesitancy towards high-risk, large-scale projects.