Swedish gaming company Embracer Group has announced that it will split into three separate gaming and entertainment companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. Embracer says the move will allow “each entity to better focus on its respective core strategies and deliver more differentiated and distinct share stories for existing and new shareholders.”
Lars Wingefors, co-founder and CEO of Embracer, emphasized that by creating three separate companies, Embracer's vision of supporting entrepreneurs and creators is strengthened, allowing them to continue to deliver unforgettable experiences for gamers and fans around the world.
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Embracer Group, which owns the rights to the popular Tomb Raider and Lord of the Rings franchises, has been aggressively “restructuring” since losing a $2 billion partnership deal last year. As a result of that lost deal, the company shut down multiple projects and studios, laid off employees worldwide, and sold Borderlands developer Gearbox to Take-Two.
Let's take a closer look at the three companies into which Embracer Group will be divided:
Middle-earth Enterprises & Friends: This company is described as a “creative force in AAA game development and publishing.” It will retain ownership of the Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider , and The Lord of the Rings IPs.
Asmodee Group: This company will focus on publishing and distributing tabletop games. The existing catalog includes established titles such as Ticket to Ride, 7 Wonders, Azul, CATAN, Dobble and Exploding Kittens. In addition, tabletop games based on The Lord of the Rings, Marvel, Game of Thrones and Star Wars franchises will be created.
Coffee Stain & Friends: This is a “diverse gaming entity” that will focus on indie, mid-market, and free-to-play games. Properties under this new company include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim.
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The CEO said that this diversification will empower the full potential of each Embracer Group team, which will have its own leadership and strategic direction. “This is the beginning of a new chapter, a chapter in which I intend to remain a part as an active, committed and supportive shareholder of all three new entities.”
As previously stated, the main objective of dividing Embracer Group into three separate companies is to allow each entity to better focus on its respective core strategies. In this way, each company will be able to manage its resources more efficiently and focus on developing and implementing its own strategies.
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Embracer Group seeks to increase the efficiency and effectiveness of its business activities. This includes improving its processes and systems , developing the capabilities of its staff, and finding new ways to increase the return on its investments.
Source: www.theverge.com
