Ex-Annapurna Interactive Staff Take Over Private Division

Executive Summary

Following a breakdown in negotiations with Annapurna Pictures CEO Megan Ellison, the majority of Annapurna Interactive's staff departed in September 2024. These former employees have now acquired the operational reins of Private Division, previously a Take-Two Interactive subsidiary.

Annapurna Interactive, prior to its 2024 restructuring, was known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch. Private Division, established in 2017, was sold by Take-Two in November 2024, with the buyer and the studio's future remaining undisclosed until now. The sale resulted in widespread layoffs.

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

Private Division's Transition Reflects Industry Instability

The departure of most Annapurna Interactive staff followed failed negotiations with CEO Megan Ellison. While Haveli's purchase retained approximately twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains uncertain.

This merger highlights the broader gaming industry's instability, characterized by substantial layoffs and studio closures in recent years. The absorption of one group of laid-off employees by another underscores the industry's current aggressive climate, driven by investor hesitancy towards high-risk, large-scale projects.