Embracer Group, the conglomerate responsible for multiple high-profile game purchases and later shut downs is being split into three different entities.
Announced on their own website, this move would see the massive company split into the following entities, all of which will be publicly lsited:
- Asmodee, a global leading tabletop games publisher and distributor with an extensive studio network and IP catalogue.
- Net Sales of SEK 14.8 billion and Adjusted EBIT of SEK 1.9 billion on a pro forma basis as per LTM[2] December 2023
- “Coffee Stain & Friends”, a diverse gaming entity with a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile, with a high degree of recurring revenues.
- Net Sales of SEK 10.9 billion, Adjusted EBIT of SEK 2.8 billion on a pro forma basis as per LTM December 2023.
- “Middle-earth Enterprises & Friends”, a creative powerhouse in AAA game development and publishing for PC and console, as well as the stewards of The Lord of the Rings and Tomb Raider intellectual properties, among many others.
- Net Sales SEK of 14.1 billion, Adjusted EBIT SEK 2.0 billion on a pro forma basis as per LTM December 2023.
“The Board of Directors, together with executive management, propose to transform Embracer Group into three separate, listed companies. This transformation is an important step in unlocking shareholder value”, says Kicki Wallje-Lund, Chair of the Board of Embracer Group.
“With this new structure, the three entities will be able to focus on executing their core strategies and leveraging their own strengths, providing more differentiated and distinct equity stories to both existing and new shareholders. 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”, she says.
This move will see the three separate bodies move independently of each other- with more focused management teams for each body.
What Happens To Embracer Group
Basically, Embracer Group as a parent company will cease to exist, with subsidiaries focusing on their own portfolios- for example Asmodee’s focus on tabletop gaming.
However, that doesn’t mean stock in the company itself will vaporize- all current stock in the conglomerate will instead be converted to Coffee Stain & Friends stock, with shares in Asmodee and Middle-Earth Enterprises & Friends being given as dividends to shareholders.
Coffee Stain & Friends will also oversee titles like Goat Simulator and Deep Rock Galactic.
Embracer Group has largely been the face of the financial insecurity plaguing the game industry- after a massive shopping spree that saw studios like Gearbox Entertainment scooped up ahead of a high-profile acquisition, Embracer started hitting cornerstones of the games industry like Eidos Montreal with layoffs once the deal fell through.
Some studios have since been able to divest themselves from the group, such as Space Marine 2 developers Saber Interactive.
