Embracer Group splits into three: Everything you need to know

gamesindustry.biz:

Sign up for the GI Daily here to get the biggest news straight to your inbox

Embracer Group has announced its split into three separate companies.

The three entities created will independently publicly listed on Nasdaq Stockholm. These companies are currently being referred to as Asmodee Group, Coffee Stain & Friends, and Middle-Earth Enterprises & Friends – although the latter two will be given a new name at a later date.

While Asmodee and Coffee Stain will become new listings on Nasdaq Stockholm, Middle-Earth will remain within the Embracer Group as it is currently listed. This listing may also be renamed.

Asmodee will split off within the next 12 months, while Coffee Stain will separate during calendar year 2025. Shares in these two will be distributed to the shareholders of Embracer Group.

The company claimed that separating into three entities will enable each to focus on its "core strategies" and grow in their own ways. The 9,003 fully owned or controlled IP across Embracer will be moved into the relevant new entity.

Asmodee Group will focus on tabletop games, while Coffee Stain's titles will range from indie to AA games for PC, console and mobile.

Middle-Earth Enterprises & Friends, meanwhile, will concentrate on AAA gaming for PC and console, handling Embracer's biggest franchises such as The Lord of the Rings and Tomb Raider.

Embracer has said there will still be collaborations around companies and IP across the three businesses, but this will be handled "on market terms."

Embracer CEO Lars Wingefors will remain the owner of all three companies, and has said he "intends to form a new long-term ownership structure."

"I have always viewed my role as a group CEO and main owner to be a promoter for successful entrepreneurs, game makers and business leaders in achieving more success," he wrote in an open letter about the company's transformation. "This will not change."

The split follows the end of a nine-month restructuring program, which saw Embracer close three studios