Swedish gaming conglomerate Embracer Group had a rough 2023 – a $2 billion USD unexpectedly fell through, plunging the company into debt. It was then forced to lay off about 5% of its employees and cancel more than a dozen projects.
Earlier this year, Embracer sold off two of its companies, Saber Interactive and Gearbox Entertainment. The group had acquired several companies, including Gearbox, in a sweeping wave of buyouts in the years prior.
As it seeks to improve cash flow, Embracer has announced that it’ll be splitting up into three companies, all of which will be publicly listed on the Swedish stock exchange. The companies are named after three of Embracer’s 10 operative groups: Asmodee Group, Coffee Stain & Friends and Middle-earth Enterprises & Friends.
Each group will focus on a different area of gaming. Asmodee will focus solely on publishing and distributing tabletop games. With ownership of over 300 IPs, it’ll also develop games for some of the franchises that Embracer already bought the rights to, including Game of Thrones and Star Wars.
Coffee Stain & Friends, meanwhile, will center on indie and free-to-play games available across consoles, PC and mobile. Middle-earth Enterprises & Friends will be dedicated to AAA titles and the development of some of Embracer’s most successful IPs, such as Tomb Raider, Dead Island and The Lord of the Rings.
"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," Embracer CEO Lars Wingefors said. "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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