Embracer Group will be split into three companies, including one ‘Middle Earth Enterprises and Friends’


    Embracer Group, the company that recently sold Star Wars: Knights of the Old Republic remake developer Saber Interactive for $500 million, has announced plans to split into three separate, publicly traded companies. What has been announced? Thus, the Embracer Group as we know it will be no more. Instead, it will largely consist of Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.

    Each of these companies will be individually operated and publicly traded on the market, with IP and franchises spread under the Embracer Group umbrella. The separation follows a rocky period for Embracer Group, which is behind the collapse of a planned $2 billion deal with Saudi Arabia-backed Savvy Games Group in 2023 for companies such as Black Forest Games and Addos-Montreal.

    “Over the past years, the Group has made significant investments in acquisitions and rapid organic growth strategies. To further realize the untapped potential in the Embracer Group and improve the optimal utilization of its resources, the Embracer Group Announced a restructuring program in June 2023. Divided into various phases lasting through March 2024,” the company writes in a. News for the newspaper. “The program’s focus has been on cost savings, capital allocation, efficiency and sustainability, while also segregating select studios.

    After a careful and thorough review, it is the assessment of the Board of Directors that the current group structure does not create the best conditions for future value creation for both Embracer Group’s shareholders and other stakeholders. In order to continue the transformation of the Embracer Group into the future for the benefit of all employees, gamers and shareholders, the Board of Directors and Executive Management have therefore decided to propose a separation from the Embracer Group, which is publicly listed. Three separate entities will be created: ‘Asmodee,’ ‘Koffee Stan and Friends,’ and ‘Middle Earth Enterprises and Friends.’

    Embracer Group says each of these entities will have its own balance sheet, financial goals and structure and allocation strategy. In short, each of these companies will be essentially independent of each other, even if they are formed under the same umbrella.

    Middle Earth Enterprises and Friends

    Following this new division, Middle-earth Enterprises & Friends “intends to remain a creative powerhouse in AAA game development and publishing for PC/console,” reads a press release. It will remain the stewards of the Lord of the Rings and Tomb Raider IPs, with the primary focus being the former.

    It will feature studios like Crystal Dynamics, Dambuster Studios, Edus-Montreal, Flying Wildhog Studios, Tripwire, Vertigo Games, War Horse Studios, 4A Games, and more, with IPs including Dead Island, Killing Floor, Kingdom Less: Deliverance, The Lord of the Rings, Metro and Tomb Raider.

    Enough scars and friends

    Embracer Group says the company aims to “comprise leading publishers and developers focused on a variety of games for PC, console, and mobile, including community-driven free-to-play games, LiveOps games, and indie/AA Games.” According to the company, it will operate in two segments: Premium and Free-to-Play.

    Its “premium” operations include studios such as Coffee Stein, Ghost Ship, Tarsier, Tuxedo Labs, THQ Nordic, and Amplifier Game Invest. Its IPs include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, Valheim, and over 200 others.

    Its “free-to-play” operations include studios like Easybrain, Deca, CrazyLabs, and Cryptic, with IPs in its wheelhouse including Soduku.com, Blockudoku, Jigsaw Puzzle, Star Trek Online, D&D Neverwinter Online, and more. .


    Asmodee consists of 23 wholly-owned studios and over 300 IPs and is part of the Embracer Group’s tabletop games division. It will continue to focus on tabletop properties, contributing to transmedia partnerships for IPs such as The Lord of the Rings and Embracer, among others in the wheelhouse. “As a global leader in board and trading card games, with a proven track record of profitable growth, Asmodee is well positioned to advance its strategy and continue to grow as a stand-alone entity. ”

    Its IPs include Ticket to Ride, 7 Wonders, Azul, Catan, Dobble, Exploding Catan, and other board games based on The Lord of the Rings, Marvel, Game of Thrones, Netflix, Lego, and Star Wars.

    “This transformation is an important step in unlocking shareholder value,” Embracer Group Board Chair Kiki Walje Lund wrote in a press release. “With this new structure, the three entities will be able to focus on executing their core strategies and leveraging their respective strengths, delivering more differentiated and distinct equity stories to both existing and new shareholders.”

    Embracer Group co-founder and CEO Lars Wingfors added, “This is the beginning of a new chapter, one that I look forward to as an active, committed, and supportive share of the three new entities, along with Evergreen Horizons. The move to three independent companies reinforces Embracer’s vision of supporting entrepreneurs and creators with a long-term mindset, enabling them to serve gamers and enthusiasts around the world. will continue to provide unforgettable experiences for

    Middle Earth Enterprises & Friends will remain within the existing publicly listed Embracer Group, which will be renamed. Asmodee and Coffee Stain & Friends will come to market as separate companies within 12 months during the 2025 calendar year.

    How do you feel about this split in the Embracer Group? Let us know in the comments below!


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