After nearly year of layoffs and companies like Saber Interactive and Gearbox Entertainment departing, the Embracer Group has announced that it will split into three publicly listed companies operating as standalone entities. The companies in question are Asmodee Group, Coffee Stain and Friends, and Middle-earth Enterprises and Friends.
This move will enable each “to better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders” and “unlock value in the high-quality assets of Embracer Group following the successful completion of the restructuring program.”
Asmodee Group’s tagline will serve as the “global leading tabletop games publisher and distributor with an extensive studio network and intellectual property catalog.” Coffee Stain and Friends is a “diverse gaming entity” focusing on single-A and double-A premium and free-to-play titles on consoles, PC and mobile with a “high degree of recurring revenues.”
Finally, Middle-earth Enterprises and Friends will be a “creative powerhouse” in triple-A game development and publishing for PC and consoles while serving as “the stewards of The Lord of the Rings and Tomb Raider intellectual properties, among many others.” On Nasdaq Stockholm, the Embracer Group is being named to Middle-earth Enterprises and Friends, with shares for the remaining two entities to be distributed as dividends to shareholders. Asmodee’s listing and distribution will occur within 12 months, while Coffee Stain’s is scheduled for the 2025 calendar year.
As for co-founder and CEO Lars Wingefors’s role, he will form a “new long-term ownership structure that includes the current holdings in Embracer Group.” In a press release, Wingefors said, “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.
“This move has been made 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.”