Summary
Former Annapurna Interactive employees have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. The majority of Annapurna Interactive's workforce departed its parent company in September 2024 following unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison.
This acquisition follows Annapurna Interactive's notable publishing history, encompassing 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 subsequent studio fate remaining undisclosed until now. The sale resulted in significant layoffs within Private Division.
According to a report by Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Haveli and the former Annapurna employees have reportedly formed a partnership to manage Private Division's existing portfolio, including the anticipated March 2025 release of Tales of the Shire, the ongoing Kerbal Space Program, and an unannounced project 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 CEO Megan Ellison. While Haveli's acquisition retained roughly twenty Private Division employees, further layoffs are expected to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains unconfirmed, as does the studio's name and overall mission.
This merger of Annapurna and Private Division underscores the current gaming industry climate. Recent years have witnessed widespread layoffs and studio closures, reflecting shifting investor expectations and risk aversion towards large-scale projects. The integration of two groups of displaced gaming professionals symbolizes the industry's current competitive landscape and the impact of investor retreat from high-risk ventures.
