Embracer Group To Restructure Into Three Entities

Video Games

Apr 23

Embracer Group has announced plans to split into three distinct companies as part of a restructuring. These three companies will control a different section of the assets that Embracer holds. Asmodee will be the distributor and publisher of tabletop games. Coffee Stain & Friends will control the indie and A/AA gaming divisions. Middle-earth Enterprises & Friends will control the AAA gaming divisions, holding the rights to IP such as The Lord of the Rings and Tomb Raider.

The companies of Asmodee and Coffee Stain & Friends will be listed on the stock market, while Embracer Group’s name will change to that of Middle-earth Enterprises & Friends. The changes are said to be completed by the end of 2025. The transformation of companies is said to be “an important step in unlocking shareholders,” according to the Chair of the Board of Embracer Group, Kicki Wallje-Lund. “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.”

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Co-founder and Group CEO of Embracer Group, Lars Wingefors, feels similarly about the future of the company. “This move has been made with the intention 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.”

It's not just the shareholders that Wingefors says this move is for, saying that this change should benefit everyone who supports Embracer Group. “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.”

Embracer has been searching for ways to decrease the amount of debt they are in for some time, including staff layoffs, and the closure of several studios. Volition, of Saints Row fame, among them. This latest plan could be the saviour for the company, or perhaps push them further into debt.

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