Embracer Group has announced further developments in its restructuring plan and will transform into three games and entertainment companies, Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
Embracer Group Subdivides Into Three After a Period of Job Cuts and Studio Closures
Existing IPs Will Be Spread Among The Companies Correspondingly
Embracer Group has announced its plans to transform into three standalone games and entertainment companies. This move comes after a period of studio closures and layoffs within the organization.The newly formed entities will be known as Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
As part of this restructuring, Embracer secured a financing agreement worth 900 million Euros through Asmodee. This funding will be used to repay existing debts within the remaining Embracer Group and reduce traders' risk.
"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," said Embracer Group Co-founder and Group CEO Lars Wingefors, "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."
Asmodee will continue its operations as a publisher and distributor of board games, trading cards, and digital board games, and will consist of 23 fully owned studios. This company will focus on developing licensed tabletop games based on popular franchises and IPs like The Lord of the Rings, Marvel, and Star Wars.
Coffee Stain & Friends will concentrate on PC, console, and mobile games, including community-driven free-to-play games, LiveOps games, and indie/AA games. This entity will operate under two segments: Premium and Free-to-play.
Coffee Stain & Friends' Premium and PC/console operations will be handled by studios such Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, as well as THQ Nordic and Amplifier Game Invest. This segment will focus on IPs that include Valheim, Deep Rock Galactica, and over 200 other games. Its Free-to-play operations will include studios Easybrain, Deca, CrazyLabs, and Cryptic. This segment will manage Sudoku.com, Blockudoku, Jigsaw Puzzle and other such IPs.
Lastly, Middle-earth Enterprises & Friends will specialize in AAA game development and publishing for PC/console, working on IPs such as The Lord of the Rings, Tomb Raider, Metro, and Kingdom Come Deliverance, among others. It will house studios like Crystal Dynamics, Eidos Montreal, and Warhorse Studios. The group will also include media company PLAION, financial services Freemode, publishing company Dark Horse, and other businesses.
"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," stated Chair of the Board Embracer Group Kicki Wallje-Lund in the announcement.
