Ex-Annapurna Interactive Staff Take Over Private Division

Executive Summary

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

Following a tumultuous 2024, Annapurna Interactive, known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw a mass departure of its employees. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and future of the studio initially unknown. The sale resulted in widespread layoffs.

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

Private Division's Restructuring Reflects Industry Trends

The September 2024 departure of most Annapurna Interactive employees followed a breakdown in negotiations with Annapurna Pictures' CEO. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The new entity's name, long-term strategy, and potential for new IP remain undisclosed.

This merger mirrors the broader gaming industry's recent instability, marked by extensive layoffs and studio closures. The acquisition of Private Division by a group of former employees from another struggling publisher highlights the industry's increasingly precarious landscape, characterized by investor hesitancy towards high-risk, large-scale projects.