Embracer Announces Division into Three Entities: Board Game Development, Mobile and Indie Games, and AAA Games

Embracer Group, a Swedish game company that has faced financial difficulties, resulting in layoffs, studio closures, and the recent sale of Saber and Gearbox studios, has announced the separation of the company into three distinct ventures that will no longer carry the Embracer Group name.

The newly separated entities are now grouped into three segments based on the type of games they produce:

Asmodee, a board game company acquired in 2021, known for popular board games such as Ticket to Ride, 7 Wonders, Azul, and Catan, will return to being an independent company with a total of 23 board game studios and a combined revenue of 14.8 billion Swedish Krona.

Coffee Stain & Friends, a company that consolidates mobile games, free-to-play games, and A/AA level games, includes titles like Deep Rock Galactic, Goat Simulator, Satisfactory, Valheim, Sudoku.com, Easy Brain, and Jigsaw Puzzle, with a total revenue of 10.9 billion Swedish Krona.

Middle-earth Enterprises & Friends, a company that brings together major game studios like Crystal Dynamics, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games, known for creating AAA console and PC games including The Lord of the Rings, Tomb Raider, Dead Island, Killing Floor, Kingdom Come Deliverance, and Metro, with a total revenue of 14.1 billion Swedish Krona.

Note: The temporary names of the two companies will remain in place.

The original parent company, Embracer Group, will change its name to Middle-earth Enterprises & Friends once the separation is complete. The two newly separated entities will also list shares on the Nasdaq Stockholm stock market.

Embracer states that this separation plan will help each company to have a clearer focus, establish their own financial plans, and operate independently without relying on the parent company.

The next step will involve a shareholder vote, with Embracer indicating that they have the potential to secure over 50% of shareholder votes in approval.

Source – Embracer Group, Embracer Group (PDF)

TLDR: Embracer Group, a Swedish game company facing financial challenges, has announced its separation into three distinct entities, each focusing on different types of games. Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends will operate independently with unique game portfolios and revenue streams. Shareholder approval for the separation plan is the next step in this restructuring.