Embracer Group will transform into Asmodee, Coffee Stain and Friends, and Middle-earth Enterprises and Friends.
By Darryn Bonthuys on April 22, 2024 at 5:42AM PDT
It has been announced that Embracer Group has plans of breaking up into three distinct game companies: Asmodee, Coffee Stain and Friends, and Middle-earth Enterprises and Friends. Each will become a distinct company and will be privately listed on the Nasdaq Stockholm.
Asmodee, maintaining an expansive portfolio of over 300 IPs, will take up the role of a tabletop games publisher. The company, at present, has a number of licensed tabletop games under development, which are built on properties such as Game of Thrones, Lord of the Rings, and more. The list of successful releases includes games like Exploding Kittens and Catan. Worth noting is the fact that Embracer Group has, via Asmodee, entered into a fresh financing agreement with certain banks, part of its strategy to “repay existing debt and reduce leverage” within the remaining Embracer Group. As part of this agreement, Asmodee’s value has been estimated at $958 million.
You need a javascript enabled browser to watch videos.
Want us to remember this setting for all your devices?
By clicking ‘enter’, you agree to GameSpot’s
Terms of Use and
enter
Now Playing: The Human Cost Of Layoffs | Spot On
Coffee Stain and Friends will “better showcase its high-margin profile and strong cash flow,” according to Embracer and it is comprised of Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, Amplifier Game Invest, and publisher THQ Nordic. This company will have more than 200 IPs in its portfolio, including Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim, which it partly owns. There’s also the free-to-play side of the company, with games like Cryptic and published titles based on popular IPs like Star Trek Online.
Finally, Middle-earth Enterprises and Friends will primarily focus on The Lord of the Rings IP, and this company owns studios like 4A Games, Flying Wild Hog Studios, Dambuster Studios, Crystal Dynamics, Tripwire, Eidos-Montreal, Vertigo Games, and Warhorse Studios alongside publishers Plaion, Freemode, and Dark Horse. It also has a strong lineup of IPs, including Dead Island, Metro, Tomb Raider, Kingdom Come Deliverance, and several other high-profile titles.
“This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction,” Embracer Group CEO Lars Wingefors said. “This is the start of a new chapter, a chapter that I intend to remain part of as an active, committed, and supportive shareholder of all three new entities, with an evergreen horizon. This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.”
This move comes shortly after Embracer Group concluded months of layoffs at the company, game cancellations, and studio closures, partly made due to a major deal falling through, which was later revealed to be a pact with Saudi Arabia’s Savvy Games reportedly valued at $2 billion. Saber Interactive divested itself of Embracer Group recently and Take-Two Interactive purchased Gearbox Entertainment from the company for $460 million.
Got a news tip or want to contact us directly? Email news@gamespot.com
