By Sagar Mankar 
Embracer Group, the Swedish gaming giant known for acquiring many gaming franchises like Tomb Raider, Borderlands, and The Lord of the Rings, has announced plans to split itself into three distinct companies.
These Three New Companies Are?
1. Middle-earth Enterprises & Friends:
- It is a rebranding of the original Embracer Group.
- It will be a creative powerhouse in AAA game development and publishing.
- It will retain ownership of renowned IPs such as Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider, and The Lord of the Rings.
2. Asmodee Group:
- Completely new company
- Dedicated to publishing and distributing Tabletop games.
- The existing catalog includes popular titles like Ticket to Ride, 7 Wonders, Azul, CATAN, Dobble, and Exploding Kittens.
- Developing licensed tabletop games based on The Lord of the Rings, Marvel, Game of Thrones, and Star Wars franchises.
3. Coffee Stain & Friends:
- Completely new company
- Described as a “diverse gaming entity” focusing on indie, mid-market, and free-to-play games.
- The existing catalog includes Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim.
How will the split be executed?
The existing Embracer Group listing on Nasdaq Stockholm will be renamed to Middle-earth Enterprises & Friends.
On the other hand, shares of new companies – Asmodee Group and Coffee Stain & Friends will be distributed as dividends to shareholders of Embracer Group.
The listing and distribution of Asmodee Group shares are expected to take place within 12 months, while Coffee Stain & Friends shares will be distributed during the calendar year 2025.
Why Splitting Now?
The restructuring comes after Embracer Group faced multiple challenges in the recent past, including:
- A $2 billion partnership deal with Saudi Arabia’s Savvy Group failed last year (though they never disclosed the deal)
- over 20+ Project shutdowns
- Mass (17000+ as rumored) employee layoffs
- Sells of Borderlands developer Gearbox to Take-Two
- Sells of Saber Interactive studios and assets, including games like Warhammer 40,000 Space Marine 2 and Knights of the Old Republic remake
- Shut down of New World Interactive, the studio behind the gritty and gripping Insurgency series
According to Lars Wingefors, co-founder and CEO of Embracer Group, this move reinforces the company’s vision of backing entrepreneurs and creators with a long-term mindset, enabling them to continue delivering unforgettable experiences for gamers and fans worldwide.
He will remain a major shareholder with a vision of an “evergreen horizon” across all 3 firms.
Sources: Embracer Group’s official press release
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