Embracer Group Announces Plan to Divide Into Three Independent Entities

Embracer Group has recently revealed its plans to divide the company into three distinct entities moving forward. This strategic move appears to be a bold effort to streamline operations and revitalize its image following a period of downsizing and workforce reductions.

As revealed on the official website (credit to VGC), the company has officially announced the listing of each entity on Nasdaq Stockholm. The names chosen for the entities are ‘Asmodee’, ‘Coffee Stain & Friends’, and ‘Middle-earth Enterprises & Friends’.

Embracer has provided a clear outline of each company’s plans:

Asmodee, a global leading tabletop games publisher and distributor with an extensive studio network and IP catalogue.

Coffee Stain & Friends”, a diverse gaming entity with a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile, with a high degree of recurring revenues.

Middle-earth Enterprises & Friends”, a creative powerhouse in AAA game development and publishing for PC and console, as well as the stewards of The Lord of the Rings and Tomb Raider intellectual properties, among many others.

In the gaming industry, we can expect major blockbuster games to be developed by ‘Middle-earth Enterprises & Friends’, while more niche indie and ‘AA’ titles will be brought to us by ‘Coffee Stain & Friends’. We have to admit, we’re not exactly thrilled with the names being used here. It’s going to be quite strange to see well-known franchises like Tomb Raider and Dead Island being associated with a company called ‘Middle-earth Enterprises’. But hey, that’s just how it is. The times have definitely changed since Tolkien’s era.

Meanwhile, Embracer has recently announced a new financing deal with Asmodee Group, totaling an impressive €900 million. This will enable the company to pay off its current debt and decrease its leverage within the remaining Embracer Group.

Embracer has announced a strategic move, citing the need for clearer operational strategies and financial profiles. This decision aims to align individual financial goals across all three companies and optimize greenlighting models, portfolios, and go-to-market strategies for both indie and AAA games.

It’s clear to us that the Embracer name has faced a lot of criticism in the past year or so. So, it’s not really shocking to see it being replaced with something new.