Embracer Group has detailed how the next stage in its plan to split into three standalone, publicly-listed companies will unfold.
Last year, the Swedish conglomerate ended a period of studio closures, divestments, and layoffs by announcing it would partition its business into three units: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friend.
At the time, Embracer said the split would enable it to “unleash the full potential of each team and provide them with their own leadership and strategic direction.”
Now, after carving out Asmodee and saddling it with debt, the company has confirmed it intends to spin off Coffee Stain Group and rename its remaining business Fellowship Entertainment.
“Embracer today announces its intention to spin-off Coffee Stain Group (previous working name Coffee Stain & Friends) into a standalone group of community-driven game developers and publishers by the end of calendar year 2025,” reads an investor update.
Shares in Coffee Stain Group will be distributed to Embracer shareholders and listed on Nasdaq First North Premier Growth Market in Stockholm. Embracer Group AB will be renamed Fellowship Entertainment, having previously been handed the working name Middle Earth & Friends.
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Coffee Stain Group will consist of over 250 game developers and publishers such as Coffee Stain, Ghost Ship, and Tuxedo Labs. It will also house certain studios from Amplifier Game Invest.
Coffee Stain CEO and co-founder Anton Westbergh will lead the group and become the steward of popular franchises including Deep Rock Galactic, Goat Simulator, Satisfactory, Valheim, Teardown, and Welcome to Bloxburg.
Embracer’s remaining business will be renamed Fellowship Entertainment and intends to unite top creators and intellectual properties to “build unforgettable experiences” for players.
Fellowship will comprise 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos-Montréal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, PLAION, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, Warhorse Studios, and more than 40 other companies.
In total, the rebranded business unit will employ roughly 6,000 people in over 30 countries. The group will control the commercial rights to The Hobbit and The Lord of the Rings and game franchises like Kingdom Come Deliverance, Dead Island, Tomb Raider, and over 300 other IPs.
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Embracer Group CEO Lars Wingefors will continue to oversee all three business entities by establishing a privately held holding company called Embracer AB that will “act as an active and supportive long-term shareholder” of Asmodee Group, Coffee Stain Group, Fellowship Entertainment, and “potentially other companies.”