Summary
Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. This follows a significant exodus of Annapurna Interactive staff in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison failed.
Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced a major restructuring in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future uncertain. 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 projects, including Tales of the Shire (slated for March 2025), the Kerbal Space Program, and an unannounced Game Freak title.
Private Division's Transition 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 accommodate the incoming Annapurna team. The new entity's name, future direction, and plans for new IP remain undisclosed.
This merger highlights the volatile gaming industry landscape, marked by substantial layoffs and studio closures in recent years. The absorption of one group of laid-off employees by another underscores the industry's aggressive approach amidst investor hesitancy towards high-risk, large-scale projects.
