Embracer Group recently lost $2 billion in investment, laid off thousands of employees and sold one of his main properties, Gearbox, fire-sale price. Now there is company announced his plans split into three separate, publicly listed entities, Bloomberg informed.
The first is Middle-earth Enterprises & Friends, which specializes in and oversees AAA games. Dead Island, Killing Floor, Kingdom Salvation, Grave robber and The Lord of the Rings franchise. Studios under his supervision include Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios and 4A Games. This company will remain currently listed as Embracer Group.
The second is Asmodee, which will handle Embracer Group’s tabletop gaming segment. The titles it controls include Ticket to ride, 7 Miracles, Azul, CATAN, Dobble and Exploding cats. Finally, Coffee Stain & Friends is the company’s indie-focused band, with features including A deep rock galaxy, Goat simulator, Satisfactory, Crash festival, Dismantle and Valheim.
“This step was taken to unlock the full potential of each team and provide them with their own leadership and strategic direction,” said Lars Vingefors, CEO of Embracer Group. “This is the start of a new chapter in which I intend to remain a part as an active, committed and supportive shareholder of all three new entities with an evergreen horizon.”
Embracer Group went on an epic buying spree between 2019 and 2022 when borrowing was cheap, acquiring studios and entertainment groups including Crystal Dynamics, Gearbox Entertainment, Dark Horse Media, Middle-earth Enterprises and many others. These came with game franchises including Tomb Raider, Deus Ex, Borderlands and Saints Row.
However, it was forced to rebuild He lost out on a $2 billion partnership deal (Reported by Savvy Games, sponsored by the Saudi government). It then cut 8 percent of its workforce (through February 2024), or about 1,400 workers. The company also sold Borderlands developer Gearbox for $460 million, a fraction of the $1.3 billion it valued three years ago.
