A Swedish gaming group that owns best sellers Lord of the Rings and Tomb Raider is splitting into three publicly listed entities to revive its fortunes.
Embracer will become Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends under the plan, saying it would allow the three distinct businesses to build on their strengths and develop differentiated and distinct equity stories.Lars Wingefors, co-founder and chief executive, explained the move reflects Embracer’s “vision of backing entrepreneurs and creators with a long-term mindset”.
The Swedish group has been struggling recently after going on a frenetic acquisition spree between 2019 and 2022, laying off hundreds of staff and selling off including Borderlands developer Gearbox for fractions of its value three years ago.
A failure to tie up a merger with an unnamed group a year ago sparked the reconstruction.
Middle-earth Enterprises & Friends will specialise in AAA games including Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider and The Lord of the Rings franchises.
Asmodee will handle the tabletop gaming segment with titles such as Ticket to Ride, 7 Wonders, Azul, CATAN and Dobble.
Coffee Stain & Friends is the company's edgier and fringe developments, including Deep Rock Galactic, Goat Simulator and Satisfactory.
OTC-listed shares in Embracer were quoted at US$9.08 ahead of the US open valuing the group at around £2.5 billion.