Private Division Acquired by Former Annapurna Interactive Team

Summary

Former employees of Annapurna Interactive have acquired the operational reins of Private Division, a gaming studio previously under Take-Two Interactive's ownership. This follows a significant exodus of Annapurna Interactive staff in September 2024, stemming from failed negotiations with Annapurna Pictures CEO Megan Ellison.

Annapurna Interactive, prior to its internal restructuring, published several critically acclaimed games, including Stray, Kentucky Route Zero, and What Remains of Edith Finch.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer, initially undisclosed, subsequently laid off most of its staff. According to journalist Jason Schreier, the acquiring entity is reportedly Haveli Investments, an Austin-based private equity firm. Haveli and the former Annapurna employees have reportedly forged an agreement to manage Private Division's existing portfolio, encompassing titles such as the anticipated Tales of the Shire (March 2025 release), the long-running Kerbal Space Program, and an unannounced project from Game Freak.

Private Division's Transition Reflects Industry Instability

The September 2024 departure of most Annapurna Interactive employees followed a breakdown in talks with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, some are expected to be let go to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains uncertain, as does its official name and overall mission.

This merger of Annapurna and Private Division's assets 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 game developers is essentially absorbing another. This situation exemplifies the cutthroat nature of the industry, particularly as investors become increasingly wary of high-risk, large-scale projects.