"Embracer Group, the Swedish gaming juggernaut, has unveiled plans to split into three distinct entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. Each will emerge as separate, publicly listed companies, marking a strategic shift to enhance focus on core strategies and offer unique equity stories for both existing and new shareholders.
Lars Wingefors, co-founder and CEO of Embracer Group, emphasizes, "This strategic move towards three independent companies reaffirms Embracer's commitment to supporting entrepreneurs and creators with a long-term vision. It empowers them to continue crafting unforgettable experiences for gamers and fans worldwide."
Embracer Group, renowned for its vast array of acquisitions such as Tomb Raider and Lord of the Rings, has been on an aggressive restructuring spree since missing out on a $2 billion partnership deal last year. This overhaul has seen the closure of numerous projects and studios, global layoffs, and the sale of Borderlands developer Gearbox to Take-Two for a fraction of its previous value.
The restructuring entails the formation of three distinct companies:
1. Middle-earth Enterprises & Friends: Formerly Embracer Group, this entity emerges as a "creative powerhouse" in AAA game development and publishing. It retains ownership of IPs including Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider, and The Lord of the Rings.
2. Asmodee Group: A fresh division dedicated to tabletop game publishing and distribution. Asmodee's portfolio includes popular titles like Ticket to Ride, 7 Wonders, Azul, CATAN, Dobble, and Exploding Kittens. Additionally, it's developing licensed games based on franchises like The Lord of the Rings, Marvel, Game of Thrones, and Star Wars. The spinoff and share listings are slated to occur within the next 12 months.
3. Coffee Stain & Friends: Positioned as a diverse gaming entity focusing on indie, mid-market, and free-to-play games. Notable properties under this banner include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim. Share listings for this entity are expected in 2025.
Lars Wingefors, co-founder and CEO of Embracer Group, states, "This strategic move aims to unleash the full potential of each team by providing them with their own leadership and strategic direction. It marks the beginning of a new chapter, in which I intend to remain an active, committed, and supportive shareholder of all three new entities, with a long-term perspective."