Private Division Poaches Team From Defunct Annapurna Interactive

Summary

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

Annapurna Interactive, known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced a significant staff departure. Private Division, established in 2017 and sold by Take-Two Interactive in November 2024, also underwent layoffs following the sale. The buyer remained anonymous until recently.

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

Private Division's Restructuring Reflects Industry Trends

The September 2024 departure of most Annapurna Interactive employees followed unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains unclear. The studio's name and overall vision are yet to be revealed.

This merger mirrors the broader gaming industry's recent turbulent period, marked by widespread layoffs and studio closures. The integration of two groups of laid-off employees underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.