Embracer plans to separate Coffee Stain Group by late 2025, rebranding its remaining operations as Fellowship Entertainment

By the close of 2025, Embracer plans to establish Coffee Stain Group as an independent entity described as a "standalone group of community-driven game developers and publishers."

The firm's strategy includes reorganizing into three distinct entities: Asmodee, Coffee Stain and Friends, and Fellowship Entertainment (formerly Middle Earth & Friends), with these changes set to be finalized in April 2024.

Coffee Stain Group will be composed of over 250 dedicated game developers and publishers focused on community-centric experiences. This group will include Coffee Stain, Ghost Ship, Tuxedo Labs, along with certain studios from Amplifier Game Invest, all located in Scandinavia. Anton Westbergh, CEO and co-founder of Coffee Stain, will serve as the Group CEO.

Shares in Coffee Stain Group will be allocated to Embracer's shareholders and are intended to be listed on the Nasdaq First North Premier Growth Market in Stockholm. The entity now known as Fellowship Entertainment (current Embracer Group) will stay listed on Nasdaq Stockholm, maintaining approximately 6,000 employees in 30 countries while managing the commercial rights to J.R.R. Tolkien's works and other IPs like Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant, and Tomb Raider.

"We're really proud of everything we've built as part of Embracer, and grateful for the support and trust we've received over the years. Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary - but in a good way," expressed Anton Westbergh, co-founder and Group CEO of Coffee Stain.

The gaming sector is challenging yet rewarding, and this separation aims to provide us with greater clarity and control over our direction. It allows us to concentrate on our strengths: supporting our developers, engaging closely with our communities, and forging a promising future for Coffee Stain.

Lars Wingefors, co-founder and Group CEO of Embracer, stated: "Coffee Stain Group possesses remarkable talent, IPs, and communities. It has been a successful model. I trust in Anton's strategy and leadership and see a substantial long-term opportunity in fostering partnerships with independent game developers and talents."

Additionally, earlier today, it was reported that THQ Nordic's studio Campfire Cabal has resumed operations after its 2023 closure. The developer contested claims of being "shut down," associating its hiatus with Embracer's restructuring efforts under its parent company Embracer.