Embracer Group will split into three companies by 2025

Embracer Group will split off to become: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
embracer group splits three companies

Embracer Group’s board of directors has announced its intention to split the company into three seperate “market-leading games and entertainment” entities, following years of turmoil. The three companies will be: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.

“The three entities will be separate, publicly listed companies, enabling each entity to better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders,” Embracer Group said. “This will enable the entities to unlock value in the high-quality assets of Embracer Group following the successful completion of the restructuring program.”

According to the press release, Asmodee Group and Coffee Stain & Friends will have shares distributed “as a dividend to the shareholders of Embracer Group and listed on Nasdaq Stockholm.” Middle-earth Enterprises & Friends will “remain within the current listed company Embracer Group, which will subsequently be renamed.”

Asmodee shares will be listed and distributed within 12 months. Coffee Stain & Friends shares will be listed and distributed by 2025.

Read: Saber Interactive officially splits from Embracer Group

Lars Wingefors, the largest shareholder of Embracer Group and its current CEO, will remain a “long-term, active, committed and supportive owner of all three entities.” Going forward, all three companies will have an entirely different directive, however.

Asmodee will focus on publishing and distributing tabletop games, including from its extensive IP catalogue (Ticket to Ride7 WondersAzulCATAN, Exploding Kittens, and much more).

Coffee Stain & Friends will be a “a diverse gaming entity with a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile.” It will include studios Coffee Stain, Ghost Ship, Tarsier, and Tuxedo Labs, as well as THQ Nordic and Amplifier Game Invest.

Middle-earth Enterprises & Friends will be a “creative powerhouse in AAA game development and publishing for PC and console, as well as the stewards of The Lord of the Rings and Tomb Raider intellectual properties, among many others.” It will include Crystal Dynamics, Dambuster Studios, Eidos-Montreal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games, among “many others.”

Per Kicki Wallje-Lund, Chair of the Board of Embracer Group, the announced transformation will unlock “shareholder value” while also allowing all three new entities to “focus on executing their core strategies and leveraging their own strengths.”

Per Wingefors, the move will allow each team to have their own leadership and “strategic direction” for the future, allowing them to “continue to deliver unforgettable experiences for gamers and fans across the globe.”

The move was reportedly made following a “careful and thorough review” where it was assessed that Embracer Group’s current structure did not create “optimal conditions for future value creation both for Embracer Group’s shareholders and other stakeholders.” The separation of Embracer Group is expected to take place over the coming 12 months, and into 2025. You can read more about the decision on the Embracer website.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.