Embracer Group is splitting into three standalone publicly listed companies

Embracer Group, the Swedish gaming conglomerate renowned for its extensive portfolio of franchises, has announced a major restructuring plan. The company intends to split itself into three distinct entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. 

According to Embracer, this move will create separate, publicly listed companies, each with a sharper focus on its core strategies and unique offerings, providing shareholders with differentiated equity stories.

Lars Wingefors, co-founder and CEO of Embracer Group, emphasized that this shift towards three independent companies aligns with the company’s vision of supporting entrepreneurs and creators with a long-term mindset. It aims to empower them to continue delivering unforgettable gaming experiences to fans worldwide.

This strategic move comes after Embracer Group’s aggressive restructuring efforts following the loss of a $2 billion partnership deal last year. The company has shut down several projects and studios, implemented layoffs globally, and recently sold Borderlands developer Gearbox to Take-Two for a fraction of its previous valuation.

The three new companies will each have distinct focuses:

  • Asmodee Group, a dedicated arm within Embracer Group, focusing on publishing and distributing tabletop games. Its existing catalog features well-known titles such as Ticket to Ride, 7 Wonders, Azul, CATAN, Dobble, and Exploding Kittens. Moreover, Asmodee is actively developing licensed tabletop games based on popular franchises like The Lord of the Rings, Marvel, Game of Thrones, and Star Wars. Embracer anticipates that the spinoff and share listings will occur within 12 months.
  • Coffee Stain & Friends, a diverse gaming entity with a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile, featuring a high degree of recurring revenues. 
  • Middle-earth Enterprises & Friends, a creative powerhouse in AAA game development and publishing for PC and console, as well as the steward of iconic intellectual properties like The Lord of the Rings and Tomb Raider. 

Wingefors stressed that this restructuring is aimed at unlocking the full potential of each team, providing them with their own leadership and strategic direction. He also expressed his commitment to remaining an active, supportive shareholder in all three new entities, with an evergreen horizon.

“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,” said Wingefors. “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.”

Written by Sophie Blake


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