Embracer Group splits into three companies

Major transformation of the gaming giant

Embracer Group

Swedish gaming and entertainment giant Embracer Group announced “a transformative step for value creation” by splitting its vast array of possessions into three separate entities, all of which will be publicly listed.

Embracer Group will split into:

• Asmodee Group: table-top games with the licenses for The Lord of the Rings, Star Wars, Marvel, Game of Thrones, Lego, and Netflix.
• Coffee Stain & Friends (name temporary): indie and double-A games from Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, Amplifier Game Invest, THQ Nordic, and others with IP like Deep Rock Galactic, Valheim, Goat Simulator, Satisfactory, Wreckfest, and Teardown.
• Middle-earth Enterprises & Friends (name temporary): triple-A games from Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games with IP like The Lord of the Rings, Tomb Raider, Dead Island, Killing Floor, Kingdom Come Deliverance, and Metro; this group will include PLAION, Freemode, Dark Horse, and other Embracer businesses.

In practice, Asmodee Group and Coffee Stain & Friends will be split off from the company, while Embraver itself will transform into Middle-earth Enterprises & Friends.

Stéphane Carville will lead Asmodee through the separation process as CEO, but is scheduled to be replaced by Thomas Koegler in the coming months. Coffee Stain & Friends will be led by Anton Westbergh, the current CEO of the Coffee Stain operative group. Middle-earth Enterprises & Friends will be headed by Phil Rogers, the man behind Embracer’s painful restructuring and CEO of the Crystal Dynamics – Eidos operative group. They’ve all joined Embracer’s executive management team to guide the transition.

Embracer stated that the split from Asmodee could likely be accomplished within twelve months, while the split from Coffee Stain may take place later on in the calendar year 2025.

The group hopes that this division into entities with sufficient scale and clearer operational goals will attract more investors, while also giving each company more freedom of operation. “The new structure enables the best possible greenlighting models, portfolios and go-to-market strategies for indie games as well as AAA games through two separate, more focused entities,” it said. At the same time, the close connection between all entities will enable them to still leverage the IP of others, if needed.

Current CEO Lars Wingefors is expected to remain an influential voice in all three companies and intends to form “a new long-term ownership structure” in the months to come. He stated: “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. 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.”