Embracer Group Announces Its Split Into Three Different Companies
Apr. 23, 2024Embracer Group Announces Its Split Into Three Different Companies
Those who closely follow the video game industry will recognize almost immediately the name of a particular company:Embracer Group.Five years ago, this company began to make headlines due to its strategy of constantly acquiring different studios, but since last year it has been making headlines of a different kind, asEmbracer Groupis the name most associated with waves of layoffs that have been hitting the gaming industry.
Now the company has announced a drastic change in its structure, as it will no longer be Embracer Group and will be divided into three different companies. The news was announced through a statement released by the company explaining what this separation entails.
The three companies will beAsmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. According to the statement, Asmodee Group will focus on board games and is currently working on projects based onThe Lord of the Rings, Marvel, Game of Thrones, Star Wars, and more.
Coffee Stain & Friends will focus on independent and free-to-play games, with control of studios like Coffee Stain, Ghost Ship, and THQ Nordic, and properties like Deep Rock Galactic, Goat Simulator, and Satisfactory. Finally, Middle-earth Enterprises & Friends will handle AAA projects with studios like Crystal Dynamics, Dambuster Studios, Eidos Montreal, and properties likeThe Lord of the Rings, Tomb Raider, Dead Island, Kingdom Come Deliverance, and more.
Lars Wingefors, who has served as CEO ofEmbracer Groupuntil now, will be the owner of the three new companies. The executive described this strategy as a way to “unleash the full potential of each team and provide them with their own leadership and strategic direction.” This split would mark the end ofEmbracer Group’srestructuring stage, which was announced in the middle of last year after the company failed to finalize a $2 billion deal.
The current proposal from theBoard of Directorssuggests that, before becoming three entities, the operations of Asmodee and Coffee Stain & Friends will be distributed among the shareholders of Embracer Group and listed on Nasdaq Stockholm, while Middle-earth Enterprises & Friends will remain within an Embracer Group that doesn’t disappear but gradually takes on a new form.
From here, the process focuses on three points to ensure the independence of the three new entities, which will affect everything that was under the Embracer umbrella.
In any case, this ensures that major investments (and risks) in video games do not affect the development of other studios or companies dedicated to other branches of entertainment or simpler projects deserving the same attention. Meanwhile, the greatest values continue to be capitalized upon.
Unfortunately, that restructuring also led to the complete closure of studios likeVolition, Campfire Cabal, and Free Radical Design, while other studios likeGearbox and Saber Interactivehad to be sold.
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