Summary

Former employees of Annapurna Interactive have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. A significant portion of Annapurna Interactive's workforce departed from its parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.

Following a tumultuous period in 2024, Annapurna Interactive, known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw a major staff exodus.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous initially, along with the future of the studio and its projects. The sale resulted in widespread layoffs within Private Division.

According to a report by Jason Schreier, the acquiring entity is allegedly Haveli Investments, an Austin-based private equity firm focused on technology and gaming. Haveli and the former Annapurna employees have reportedly formed a partnership to manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025 release), the Kerbal Space Program, and an unannounced project from Game Freak.

Private Division's Restructuring Reflects Industry Trends

The mass departure of 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 future plans of the combined entity, including potential new IP or projects, remain undisclosed, as does the new studio's name and overall direction.

This merger of Annapurna and Private Division highlights the volatile state of the gaming industry. Recent years have witnessed substantial job losses and studio closures. The acquisition, where one group of displaced game developers absorbs another, reflects the industry's aggressive approach as investors retreat from high-risk, large-scale projects.