Embracer Group Has Announced It’s Splitting Into Three Separate Companies

That's one way to do it.

Embracer Group, which has been consistently in discussion for its rapid shuttering and shedding of studios over the last months and years while it tried to wrangle its finances following a spree of acquisitions, has now announced that it’s splitting off into three separate, listed companies.

The move will see Embracer transform into three different brands – “Asmodee,” “Coffee Stain & Friends” and “Middle-earth Enterprises & Friends,” with the idea seemingly to allow each company to better serve its individual components and leveraging their unique strengths to move toward a better overall outlook.

Asmodee, an international publisher and distributor of board games, trading cards and digital board games, was acquired by Embracer in 2022 and will now become its own traded entity and continue to do what it does best.

Meanwhile, Coffee Stain & Friends will represent a bit of a variety bag of developers and IP across PC, consoles and mobile with everything from F2P and live service to indie and AA, and will include brands like Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, as well as THQ Nordic and Amplifier Game Invest under a “Premium” segment with another “Free-To-Play” segment taking care of more mobile-focused properties.

Lastly, Middle-earth Enterprises & Friends will be pretty much what it sounds like – a home for “powerhouse” franchises and AAA development for IP like The Lord of the Rings, Tomb Raider, Dead Island, Kingdom Come: Deliverance, Metro and more, and will include studios such as Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios and 4A Games among others.

“The Board of Directors, together with executive management, propose to transform Embracer Group into three separate, listed companies. This transformation is an important step in unlocking shareholder value. With this new structure, the three entities will be able to focus on executing their core strategies and leveraging their own strengths, providing more differentiated and distinct equity stories to both existing and new shareholders. After careful evaluation of various strategic alternatives, we strongly believe that this decision will benefit all stakeholders and position us for continued success in the future,” says Kicki Wallje-Lund, Chair of the Board of Embracer Group in a press release.

“This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction. This is the start of a new chapter, a chapter that I intend to remain part of as an active, committed, and supportive shareholder of all three new entities, with an evergreen horizon. This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe,” added Lars Wingefors, co-founder and Group CEO of Embracer Group.