Embracer Group has announced that it will split into three separate entities, calling the move a "transformative step for value creation".
The new companies are Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends, each of which will be a separate, publicly listed company, according to an Embracer press release.
Shares in Asmodee and Coffee Stain will be distributed to Embracer shareholders, with the listing of the former expected within 12 months and the latter's listing to happen "during calendar year 2025".
Current Embracer Group CEO Lars Wingefors will, according to the aforementioned press release, "form a new long-term ownership structure" and will remain a "long-term, active, committed, and supportive owner" of all three companies.
It doesn't look like much will change in terms of how Asmodee and Coffee Stain operate; Asmodee will remain a "global leading tabletop games publisher and distributor", while Coffee Stain will continue to focus on "indie and A/AA premium and free-to-play games" across PC, consoles, and mobile.
Middle-earth Enterprises, meanwhile, will be a "creative powerhouse in AAA game development and publishing", as well as holding the IP rights for Lord of the Rings, Tomb Raider, and "many others".
Embracer's press release says that this is all part of the company's restructuring effort, which began in June last year and which has seen studios shut down and employees laid off across the group.
Embracer says its Board has concluded that the company's current structure "does not create optimal conditions for future value creation" for shareholders, which is why the decision has been made to split the group into three.
Despite the companies becoming their own entities, they'll still be collaborating closely; Embracer's press release says that collaboration around intellectual properties, as well as the companies themselves and their staff, "will still be enabled and encouraged".
We'll have to wait and see what this split means in practical terms, but one thing's for sure: Embracer Group is dead, at least in name. Stay tuned for more.
