Embracer Group To Split Into Three Companies Focusing on Games for Different Platforms
| Tags: Features
| Author Sid
Embracer Group to split the company into three distinct entities.
Swedish Conglomerate Embracer Group, known for owning the rights to IPs Tomb Raider and Lord of the Rings announced their decision to split the company into three separate entities.
Each of the three companies will focus on developing video games for different platforms. Through a press release, Embracer revealed the titles for their three new companies post the split, which will be called Asmodee Group, Coffee Stain & Friends and Middle Earth Enterprises & Friends.
The move comes after the company revealed its plan to restructure after losing out over $2 billion on partnerships in 2023. Embracer had made a slew of high-profile acquisitions over the past few years, with the spending spree forcing the Swedish giant to ‘restructure’ its workforce and available entities.
Embracer Group to Be Renamed Post the Split
Embracer Group will be renamed to Middle-earth Enterprises & Friends, and they will continue to focus on developing big-budget AAA titles for a variety of platforms. Described as a ‘creative powerhouse in AAA game development and publishing’ the company will retain ownership of large IPS such as Tomb Raider, Dead Island and more.
Meanwhile, Asmodee Group will be the second separate entity from the list that will focus on publishing and distributing tabletop games. Asmodee Group is working to develop tabletop games based on popular IPs including Marvel, Game of Thrones and Star Wars franchises.
Coffee Stain and Friends will focus on developing indie, mid-market and free-to-play titles across mobile, PC, and a variety of platforms.
It is worth mentioning that each of the companies will be publicly listed as separate entities on National Association of Securities Dealers Automated Quotations (NASDAQ). Post the announcement on Tuesday evening, Embracer stock shot right up by 11% on NASDAQ. It has now ‘cooled’ down to 7% as of Monday, April 22.
Through the press release, Embracer Group CEO and co-founder Lars Wingefors revealed that “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.”
“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.” revealed the Embracer Group CEO via the press release.
The press release also revealed that all three entities are reported to have sufficient scale, “coupled with clearer operational strategies and financial profiles that enable simplified equity stories to attract a larger pool of investors.”
The announcement doesn’t mean that fans should expect their beloved IPs to become stagnant because of this division, as “ongoing and future collaboration around IPs, companies and people will still be enabled and encouraged across the entities on market terms.”
For more Esports business news, game patch updates, and more, follow us here on ESTNN.
With a Bachelor’s Degree in Journalism and Mass Communication, Sid has been writing about Esports since 2016. In times of crisis, Sid finds solace in movies and making art. Also, chocolate!