Embracer Group to split into three new companies

Embracer Group has announced that it will be splitting into three new companies. The new companies are going to be Asmodee, Coffee Stain & Friends, and Middle-Earth Enterprises & Friends. All three of them will be separate firms on Stockholm’s NASDAQ (stock market).

Asmodee has also struck a new financial investment agreement with Embracer worth €900 million, all the money will go towards paying debts and making Embracer Group’s work easier.

The before mentioned Asmodee is going to continue working as a board games, and trading cards game publisher with 23 owned studios. Coffee Stain’s focus is going to be on PC, console and mobile games, including “community-driven free-to-play games, LiveOps games and indie / AA games”.

It is going to be working on free and premium titles, with the premium consisting of Coffee Stain, THQ Nordic, Ghost Ship, Tuxedo Labs, Tarsier, Amplifier Game Invest, and more.

Middle-Earth Enterprises & Friends has been described as a “creative powerhouse in AAA game development and publishing for PC / console” and will own the Lord of the Rings and Tomb Raider IPs, along with the likes of Dead Island, Metro, and Kingdom Come Deliverance.

Their Friends include studios such as: Crystal Dynamics, Dambuster, Eidos Montreal, Flying Wild Hog, Tripwire, Vertigo Games, Warhorse Studios and 4A Games.

Embracer’s CEO Lars Wingefors said this split will help the teams to work on different strategies. He also shared the following three statements about the split.

“There is not one way to do business, but some business models are more similar than others,” he explained. “The same goes for businesspeople. The ambitions may be similar, but the approach differs.”

“The similarities between the businesses that will make up Asmodee, Coffee Stain & Friends and Middle-earth Enterprises & Friends are striking, but so are also the differences when it comes to go-to-market strategies and business profiles. All the companies have bright futures ahead, by perfecting what is working for each of them, and by continuing to cooperate when it makes sense.”

“There is significant untapped potential within the group, which I am confident the new structure will unleash. This will empower each individual and each team to grow and excel further in their careers, as well as provide them with their own leadership and strategic direction.”