As a result of this move, Coffee Stain Group will take with it 250 employees among its development and publishing divisions. The overall group will include Coffee Stain, Tuxedo Labs, and Ghost Ship, along with some Scandinavia-based studios from Amplifier Game Investment. Some of the IPs under Coffee Stain Group will be Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim, and Welcome to Bloxburg.

Fellowship Entertainment, on the other hand, will focus on transforming its business into a group that can handle game development and publishing, as well as the development of new IPs that can be spin-off into transmedia properties, including comics, merchandise, and film. Companies under Fellowship Entertainment include 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos-Montréal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, PLAION, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, and Warhorse Studios. These are among the 40 different companies under Fellowship Entertianment.

“We’re really proud of everything we’ve built as part of Embracer, and grateful for the support and trust we’ve received over the years,” wrote Coffee Stain founder and group CEO Anton Westbergh. “Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary—but in a good way.”

“The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms. We can now focus even more on what we do best—supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain.”

Embracer co-founder and group CEO Lars Wingefors also had a statement where he praised the talent, IPs and communities under Coffee Stain Group. The decision to split the company off was seemingly made because of Westbergh’s strategies and leadership for the long-term health and success of the company.

“Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success,” said Wingefors. “I am confident in Anton’s strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents.”

While the move looks largely like it might end up being a good thing for all parties involved, only time will tell how they might end up affecting the developers at all of the studios, as well as the games that they’re making, that will be affected.

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.”