Embracer Group has initiated the next steps in its business transformation, confirming Coffee Stain Group (formerly known as Coffee Stain & Friends) will officially be spun off into a standalone company. The move follows the separation of Asmodee in February 2025.
In April 2024, Embracer Group announced it would split off its businesses after years of turmoil, influenced by changing market conditions, and a period of significant company over-spending. At the time, the company outlined a plan to separate into three publicly-listed companies to enable a “better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders.”
Coffee Stain Group will now take leave, transforming to become “a standalone group of community-driven game developers and publishers” by the end of 2025. Coffee Stain Group’s shares will be distributed to the shareholders of Embracer.
“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. 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,” Anton Westbergh, co-founder and Group CEO of Coffee Stain said.
Read: Embracer Group will split into three companies by 2025
“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.”
Coffee Stain will continue to develop and publish games, with the teams of Coffee Stain, Ghost Ship and Tuxedo Labs as well as “certain studios from Amplifier Game Invest, all based in Scandinavia” now focussed on creating new “community driven experiences.”
Embracer Group to be renamed ‘Fellowship Entertainment’
In addition to announcing plans for Coffee Stain Group, Embracer has also noted a significant rebrand for the remaining slice of the business. Going forward, the team formerly known as Embracer Group will now be known as Fellowship Entertainment.
This name is inspired by the Lord of the Rings IP, which Fellowship Entertainment owns. As noted, the license grants them the commercial rights to The Hobbit and The Lord of the Rings. In addition, the company also owns the rights to IP including Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant, Tomb Raider, and more.
“Fellowship Entertainment will be uniting top creators and intellectual properties, fostering creativity to build unforgettable experiences for the fans,” the press release says. “The strategy is to transform into one powerhouse group with game development and publishing at its core, complemented with transmedia capabilities within IP licensing, comics, merchandise, film and distribution. In total, Fellowship Entertainment will have approximately 6,000 employees across more than 30 countries.”
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, Warhorse Studios, and more will fly under the Fellowship Entertainment banner.
