Fellowship Entertainment will separate from Embracer Group in 2027, taking with it “The Lord of the Rings” and many other major IPs

Embracer Group has outlined the next phase of its transformation.

Kingdom Come: Deliverance II

To begin, let us recall that two years ago, Embracer Group announced plans to split its business into three public companies: these were later named Asmodee Group, Coffee Stain Group, and Fellowship Entertainment. It was planned that each would exit the holding and register independently on the Nasdaq Stockholm exchange. Simultaneously, a fourth company—Embracer AB—would be formed, which would become a long-term shareholder of all the others.

As of today, Asmodee Group and Coffee Stain Group have already left the holding, and now Fellowship Entertainment’s turn is approaching. According to Embracer Group, its separation will occur sometime in 2027—the exact date has not yet been determined. It appears that what remains of the holding after Fellowship Entertainment’s departure will be Embracer AB.

Here is how the assets will be distributed between Fellowship Entertainment and the remainder of Embracer Group:

• under Fellowship Entertainment’s control will be teams including 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games, and Warhorse Studios;
• within Embracer Group, Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, PLAION Partners, PLAION Pictures, Tripwire, Vertigo Games, and THQ Nordic, along with its 35 subsidiary studios and companies, will continue to operate;
• as a result, Fellowship Entertainment will own IPs such as “The Lord of the Rings,” Tomb Raider, Metro, Kingdom Come: Deliverance, and many others. Meanwhile, Embracer Group will retain in its portfolio Gothic, Titan Quest, Killing Floor, Destroy All Humans!, Biomutant, and several other franchises.

According to Embracer Group, the separation will provide both parties with more freedom and allow them to better realize their potential. Fellowship Entertainment will be able to focus on game development, publishing, and licensing, while Embracer Group will once again engage in mergers and acquisitions.