Swedish gaming conglomerate Embracer Group announced plans on Monday to split itself into three distinct games and entertainment companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. These will be separate, publicly listed companies, according to Embracer, which says the move will allow “each entity to better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders.”

“This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset,” says Lars Wingefors, co-founder and Embracer Group CEO, “allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.”

Embracer Group, which is known for acquiring the rights to a dizzying number of franchises like Tomb Raider and Lord of the Rings, has been aggressively “restructuring” since losing out on a $2 billion partnership deal last year. Since then, the company has shut down several projects and studios, laid off employees globally, and sold Borderlands developer Gearbox to Take-Two for a fraction of the $1.3 billion it was valued at when it was purchased three years ago.

The three new companies will be broken down as follows:

Middle-earth Enterprises & Friends: This company, which will be renamed from Embracer Group, is described as a “creative powerhouse in AAA game development and publishing” that will retain ownership of the Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider, and The Lord of the Rings IPs.
Asmodee Group: a new arm dedicated to publishing and distributing tabletop games. The existing catalog includes established titles like Ticket to Ride, 7 Wonders, Azul, CATAN, Dobble, and Exploding Kittens. Asmodee is also developing licensed tabletop games based on The Lord of the Rings, Marvel, Game of Thrones, and Star Wars franchises. Embracer anticipates the spinoff and share listings will take place “within 12 months.” Coffee Stain & Friends: described as a “diverse gaming entity” that will focus on indie, mid-market, and free-to-play games. Properties sitting under this new company include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim. The share listings are projected to become available in 2025. “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,” said Wingefors. “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.”


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