Former Annapurna Interactive Staff Acquire Private Division

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously under Take-Two Interactive's ownership. The acquisition follows the departure of most Annapurna Interactive staff in September 2024 after failed negotiations with Annapurna Pictures CEO Megan Ellison.

Annapurna Interactive, prior to its restructuring, published acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future initially uncertain. The sale resulted in significant layoffs.

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

Private Division's Transition Reflects Industry Instability

The mass exodus from Annapurna Interactive in September 2024 stemmed from failed negotiations 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, long-term strategy, and potential for new IP remain undisclosed.

This merger mirrors the broader gaming industry's recent turmoil, characterized by widespread layoffs and studio closures. The integration of two groups of displaced game developers underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.