VERIFIEDBy Xavier Rivera· ·2 min read
Embracer to Split Into Two Companies, Spinning Off Tomb Raider and LOTR
Embracer Group has announced plans to split into two public companies in 2027, with Fellowship Entertainment taking major IPs including Tomb Raider, Lord of the Rings, Dead Island, Metro and others. The restructuring is intended to give each entity greater focus, unlock undervalued assets and provide Embracer more flexibility for mergers and acquisitions.
Source:Video Games Chronicle
TL;DRAI · 60 sec read
Embracer Group has announced its intention to split into two public companies. Fellowship Entertainment is planned to be established in 2027 as an “IP-led” entertainment company built around the development, publishing, and licensing of games with a single, centralized business plan.
The new company will take over stewardship of The Lord of the Rings IP and game franchises such as Tomb Raider, Darksiders, Dead Island, Kingdom Come Deliverance, Metro, and Remnant. Studios joining Fellowship Entertainment will include 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games, and Warhorse Studios.
Embracer will operate as a highly decentralized organization with distinct strategies across its business segments. It will oversee IPs including Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, Reanimal, Ride, Screamer, Titan Quest, and Wreckfest, as well as licenses such as Hot Wheels Unleashed and SpongeBob SquarePants.
Companies remaining with Embracer include Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, Plaion Partners, Plaion Pictures, THQ Nordic (including 35 studios and subsidiaries), Tripwire and Vertigo Games.
According to an announcement, the split will allow Embracer more flexibility to pursue mergers and acquisitions, while Fellowship focuses on its studios and publishing efforts.
Embracer Group’s current CEO Phil Rogers and COO Lee Guinchard will transition to become the CEO and COO of Fellowship Entertainment, along with CFO Müge Bouillon. A recruitment process for a new CEO and CFO for Embracer has been initiated.
Lars Wingefors, chair of the board of Embracer Group, said in a letter to shareholders that the main rationale to spin-off Fellowship is to increase management focus to capture the full joint potential of the IPs, their respective communities and some of the best game developers in the world. He said: "Just like Asmodee and Coffee Stain, we believe Fellowship Entertainment will thrive the most by becoming its own standalone business."
Wingefors added: "I think the assets held by Fellowship Entertainment are among the most undervalued in the industry and I feel it’s my duty as the largest shareholder to change this and create a structure to realize their full potential. I’m convinced that Fellowship Entertainment could reach industry leading profitability and show healthy long-term organic growth above the industry average."
The new company will take over stewardship of The Lord of the Rings IP and game franchises such as Tomb Raider, Darksiders, Dead Island, Kingdom Come Deliverance, Metro, and Remnant. Studios joining Fellowship Entertainment will include 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games, and Warhorse Studios.
Embracer will operate as a highly decentralized organization with distinct strategies across its business segments. It will oversee IPs including Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, Reanimal, Ride, Screamer, Titan Quest, and Wreckfest, as well as licenses such as Hot Wheels Unleashed and SpongeBob SquarePants.
Companies remaining with Embracer include Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, Plaion Partners, Plaion Pictures, THQ Nordic (including 35 studios and subsidiaries), Tripwire and Vertigo Games.
According to an announcement, the split will allow Embracer more flexibility to pursue mergers and acquisitions, while Fellowship focuses on its studios and publishing efforts.
Embracer Group’s current CEO Phil Rogers and COO Lee Guinchard will transition to become the CEO and COO of Fellowship Entertainment, along with CFO Müge Bouillon. A recruitment process for a new CEO and CFO for Embracer has been initiated.
Lars Wingefors, chair of the board of Embracer Group, said in a letter to shareholders that the main rationale to spin-off Fellowship is to increase management focus to capture the full joint potential of the IPs, their respective communities and some of the best game developers in the world. He said: "Just like Asmodee and Coffee Stain, we believe Fellowship Entertainment will thrive the most by becoming its own standalone business."
Wingefors added: "I think the assets held by Fellowship Entertainment are among the most undervalued in the industry and I feel it’s my duty as the largest shareholder to change this and create a structure to realize their full potential. I’m convinced that Fellowship Entertainment could reach industry leading profitability and show healthy long-term organic growth above the industry average."
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