Written by Dante Uzel on 23 April 2024 18:48
Swedish gaming giant Embracer Group, revealed on Monday its intention to divide into three separate entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. According to reports, each of these will become a standalone, publicly listed company.
Embracer Group will split into three distinct companies:
Middle-earth Enterprises & Friends: Renamed from Embracer Group, it will focus on AAA game development and publishing, holding IPs like Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider, and The Lord of the Rings. Asmodee Group: Dedicated to tabletop game publishing and distribution, with titles such as Ticket to Ride, 7 Wonders, Azul, and licensed games based on The Lord of the Rings, Marvel, Game of Thrones, and Star Wars franchises. Coffee Stain & Friends: A gaming entity focusing on indie, mid-market, and free-to-play games, including Deep Rock Galactic, Goat Simulator, Satisfactory, and Valheim.
The announcement met with criticism. The company went through a lot of layoffs and sales. Most recently the sale of Saber for $247m. CEO Lars Wingefors stated "It's been painful, but I still believe in what we do, I believe in my teams and the vision we set out. I also believe the public markets, if we do it right, are a fantastic place to finance your business and tap into both investors and the debt market."
Kicki Wallje-Lund, Chair of the Board of Embracer Group stated “The Board of Directors, together with executive management, propose to transform Embracer Group into three separate, listed companies. This transformation is an important step in unlocking shareholder value. With this new structure, the three entities will be able to focus on executing their core strategies and leveraging their own strengths, providing more differentiated and distinct equity stories to both existing and new shareholders. 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.”
Tags: Embracer Group
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