Embracer Group to split into three companies

Embracer Group has announced its intention to transform into three standalone publicly listed companies.

Embracer Group is a Swedish video game and media holding company that has grown exponentially in the past few years, with a reported catalog of over 900 owned or controlled franchises. The group bought multiple studios, created mergers, and bought multiple high profile IPs. But financial trouble has caught up to them, with a restructure being announced last summer. Along with recent layoffs, it seems more action was required.

The three new separate publicly listed entities are expected to consist of 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 revenue; and “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.

"The Board of Directors, together with executive management, propose to transform Embracer Group into three separate, listed companies. 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”, said Kicki Wallje-Lund, Chair of the Board of Embracer Group.

The Board of Directors proposes that shares in two of these entities, Asmodee and “Coffee Stain & Friends”, will be distributed to the shareholders of Embracer Group, and listed on Nasdaq Stockholm. The third entity, “Middle-earth Enterprises & Friends”, will remain within the current listed company Embracer Group, which will eventually be renamed at the same time as the “Coffee Stain & Friends” spinoff.

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