(Bloomberg) -- Microsoft Corp. is divesting the Toys for Bob video-game studio two decades after its Activision subsidiary purchased the developer of Skylanders and other titles. 

Toys for Bob heads Paul Yan and Avery Lodato wrote in a blog post Thursday that the business will operate as an independent studio and that they’re looking for a “possible partnership” with Microsoft. Financial terms weren’t disclosed. 

“This opportunity allows us to return to our roots of being a small and nimble studio,” the pair said.

A spokesperson for Activision said the company fully supports Toys for Bob’s plans and is “excited for what’s to come from this incredibly talented studio.”

Toys for Bob was founded in 1989. It’s had a number of hits over the years, including Skylanders, which merged collectible figures and video-game play, and Crash Bandicoot N. Sane Trilogy. In recent years, the studio has worked on Activision’s Call of Duty franchise.

Microsoft acquired Activision for $69 billion in October, the largest-ever acquisition in the video-game industry. The industry is in a period of retrenchment, marked by job cuts and games being canceled. In January, Microsoft eliminated 1,900 positions across its gaming divisions, including dozens at Toys for Bob. 

Bloomberg reported Thursday that Embracer Group AB is selling one its largest subsidiaries, game maker Saber Interactive, to a group of investors in a $500 million deal.

The website Game File reported on the Toys for Bob news earlier Thursday.

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