Summary
Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The acquisition follows the departure of most Annapurna Interactive staff 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, saw its workforce significantly reduced in 2024. Private Division, established in 2017 and sold by Take-Two in November 2024, also experienced substantial layoffs following the sale. The buyer's identity remained secret until recently.
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 (due March 2025), Kerbal Space Program, and an unannounced Game Freak title.
Private Division's Transition Reflects Industry Instability
The mass exodus from Annapurna Interactive stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition saved roughly twenty Private Division employees, some will likely be let go to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains unknown.
This merger underscores the volatile state of the gaming industry. Recent years have witnessed widespread layoffs and studio closures, creating a climate where one group of displaced workers absorbs another. This reflects a ruthless industry trend driven by investor hesitancy towards high-risk, large-scale projects.
