Embracer Group to Transform into Three Separate Public Companies

Board of directors of Embracer Group AB announce plans to separate into three publicly listed games and entertainment companies: Asmodee Group, Coffee Stain & Friends and Middle-earth Enterprises & Friends.

April 22, 2024

5 Min Read
Embracer Group logo.
Embracer Group logo.Embracer Group

Since its inception, Embracer Group has grown into a global group of creative and entrepreneurial businesses in PC, console, mobile and other related media. Embracer’s growth has been possible through the group’s decentralized operating model, where entrepreneurs run operations as part of 11 operative groups – each with their own distinctive heritage, intellectual property, branding, business strategy and operations. The Group also has an extensive catalog of over 9,000 wholly owned or controlled franchises, including some of the most popular titles in gaming, comics and other media.

During the past few years, Embracer Group has made significant investments in acquisitions and into a strategy of accelerated organic growth. To further realize the untapped potential in Embracer Group and better optimize its resources, Embracer Group announced a restructuring program in June 2023, divided into different phases lasting until March 2024. The program focused on cost savings, capital allocation, efficiency, consolidation and divesting selected studios.

The board of directors has decided to separate Embracer Group, creating three separate publicly listed entities: Asmodee, Coffee Stain & Friends and Middle-earth Enterprises & Friends.

“The board of directors, together with executive management, propose to transform Embracer Group into three separate, listed companies,” says Kicki Wallje-Lund, chair of the board, Embracer Group. “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.”

Related:The Power of Evergreen IP: ‘Lord of the Rings’ Boosts Embracer Group

“This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction,” says Lars Wingefors, co-founder, group chief executive officer, Embracer Group. “This is the start of a new chapter, a chapter that I intend to remain part of as an active, committed and supportive shareholder of all three new entities, with an evergreen horizon. This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.”

Asmodee is an international publisher and distributor of board games, trading cards and digital board games. It owns 23 studios and 300+ IPs and constitutes the Tabletop Games operating segment of Embracer Group.

The 23 in-house studios develop tabletop games for all types of players across social, tabletop and lifestyle, including a steady addition of new content for key brands. The catalog of 300+ owned IPs includes board games, Ticket to Ride, 7 Wonders, Azul, Catan, Dobble, Exploding Kittens and an extensive number of distributed games and IPs. Asmodee is also developing a range of licensed tabletop games based on The Lord of the Rings, Marvel, Game of Thrones, Netflix, Lego and Star Wars, including the recent successful trading card game release of Star Wars: Unlimited.

Coffee Stain & Friends will consist of publishers and developers focused on various PC, console and mobile games, including community-driven free-to-play games, LiveOps games and indie/AA games.

As a standalone company, the entity will operate under two distinct segments: Premium and Free-to-play. Premium PC/console operations will include, among others, Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, THQ Nordic and Amplifier Game Invest. Intellectual properties include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, Valheim and over 200 other IPs. Free-to-play operations will include Easybrain, Deca, CrazyLabs and Cryptic. Intellectual properties include Sudoku.com, Blockudoku, Jigsaw Puzzle and many other IPs. Key published free-to-play games based on licensed IPs include “Star Trek Online” and “D&D Neverwinter Online.”

Middle-earth Enterprises & Friends will remain a creative powerhouse in AAA game development and publishing for PC/console and the stewards of The Lord of the Rings and Tomb Raider intellectual properties.  

As a standalone company, Middle-earth Enterprises & Friends will operate as a more transparent entity, offering a better structure to maximize the potential of its highly strategic franchises, with a focus on the Lord of the Rings and several other key IPs.

Middle-earth Enterprises & Friends will be the home of critically acclaimed studios, including Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios and 4A Games, among many others. IPs include Dead Island, Killing Floor, Kingdom Come Deliverance, The Lord of the Rings, Metro and Tomb Raider, among many others. The group will include PLAION, Freemode, Dark Horse and other businesses.

“There is no one way to do business, but some business models are more similar,” says Wingefors. “The same goes for businesspeople. The ambitions may be identical, 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 the differences in 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 and provide them with their own leadership and strategic direction.”

The listing and distribution of shares in Asmodee are expected to occur within 12 months, and the listing and distribution of shares in Coffee Stain & Friends are scheduled to occur in 2025.

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Embracer GroupAsmodee
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