Ex-Annapurna Team Leads New Venture at 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. Subsequently, these former employees have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership.

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

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the undisclosed buyer. Haveli and the former Annapurna staff have reportedly formed a partnership 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 mass exodus from Annapurna Interactive in September 2024 followed failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained roughly twenty Private Division employees, further layoffs are expected to integrate the Annapurna team. The new entity's name, long-term strategy, and potential for new IP remain uncertain.

This merger of former Annapurna and Private Division employees mirrors the broader gaming industry's recent instability, marked by widespread layoffs and studio closures. The situation highlights a prevailing "survival of the fittest" mentality within the industry, driven by investor hesitancy towards high-risk, large-scale projects.