Embracer Group will split into three public companies
The management of the Embracer Group has announced a decision to split the Swedish holding into three companies, each of which will be separately listed on the Nasdaq Stockholm stock Exchange.
Embracer Group explained that the current structure "does not create optimal conditions" for further growth of the holding. The separation will allow companies to better focus on their business segments and increase the chances of success.
Embracer Group will be divided into:
- Asmodee is a publisher and distributor of board games;
- Coffee Stain & Friends is a division working with indie and A/AA-level games for PC, consoles and mobile devices. It will include Coffee Stain, Ghost Ship Games, Tarsier, Tuxedo Labs, THQ Nordic and Amplifier Game Invest;
- Middle-earth Enterprises & Friends is a division for working with AAA-level games for PC and consoles. It will also manage IP such as "Lord of the Rings" and Tomb Raider. Under the wing of Middle-earth Enterprises & Friends will be Middle-earth Enterprises, PLAION, Freemode, Dark Horse, Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, 4A Games and many other companies.
Embracer Group noted that the list of assets distributed between Coffee Stain & Friends and Middle-earth Enterprises & Friends may still change slightly for strategic reasons. The final decision will be made before the end of fiscal 2025.
The Board of Directors of Embracer Group proposes to distribute shares of Asmodee and Coffee Stain & Friends among the shareholders of Embracer Group. Asmodee, as an independent company, is expected to start trading on the stock exchange within 12 months, and Coffee Stain & Friends — during fiscal 2025. Middle-earth Enterprises & Friends will get the rest of the currently traded shares of Embracer Group.
The headquarters of all three companies will be located in Karlstad, Sweden.
Embracer Group CEO Lars Wingefors will remain the owner of all three companies, but each will have its own management. In particular, Asmodee's Chief Operating Officer Thomas Koegle will become its new CEO. Who will head Coffee Stain & Friends and Middle-earth Enterprises & Friends is not specified. But it is known that Anton Westberg, the head of Coffee Stain, will lead the process of separating Coffee Stain & Friends. Phil Rogers, head of the Crystal Dynamics - Eidos group, will be responsible for the process of separating Middle—earth Enterprises & Friends.
Note that Coffee Stain & Friends and Middle-earth Enterprises & Friends are working names that will then be changed.
"There is no single way of doing business, but some business models are more similar to each other than others. The same applies to managers. The ambitions may be similar, but the approach is different. The similarities between the organizations that will form part of Asmodee, Coffee Stain & Friends and Middle-earth Enterprises & Friends are striking, but the differences are equally striking when it comes to market entry strategies and business profiles. All companies have a bright future if they improve what works for each of them and continue to cooperate when it makes sense," said Vingefors.
After the announcement, the shares of Embracer Group rose by 10%. At the time of writing, they are trading at a price of 27.94 Swedish kronor ($2.56) per piece.
