The Värmland-based gaming group Embracer Group will be split into three smaller, separate companies that will all be listed on the Stockholm Stock Exchange. Embracer believes that the split should allow each respective company to focus more on a specific core business that should be able to create unique and diversified content. But not primarily for the sake of their customers.
After a careful re-evaluation of strategic options, we strongly believe this decision will benefit all shareholders and position us for continued success in the future. – Kicki Wallje-Lund, chairman of the board for Emrbracer Group.
The decision comes shortly following the group sold the game developer Gearbox – which, among other things, is behind the Borderlands games – to American Take-Two for almost SEK 5 billion. The decision was part of Embracer’s efforts to reduce its net debt.
Asmodee Group
Asmodee is a French company that is already owned by Embracer, which will receive a so-called Spin-off on the Stockholm Stock Exchange. Like the original company, Asmodee will continue to distribute card and board games such as Catan, Exploding Kittens and a range of licensed titles alongside Marvel, Game of Thrones and Star Wars.
Coffee Stain & Friends
This company will review the development of games for both PC and console under two different departments – Premium and Free to play. The premium department will be responsible for the distribution and updating of games such as Deep Rock Galactic and Valheim. The Free to Play department will be responsible for, among others, Sudoku.com and licensed titles such as Star Trek Online and Dungeons & Dragons: Neverwinter.
Middle-earth Enterprises & Friends
As the name suggests, Middle-earth Enterprises will get the rights to the Lord of the Rings games but also Embracer’s other major game brands such as Tomb Raider, Metro and Dead Island. Game developers Eidos-Montréal, Crystal Dynamics and Tripwire will become subsidiaries of Middle-earth Enterprises.
Embracer’s CEO Lars Wingefors will remain as an owner in all three companies following the split is completed.
