Embracer Group, a holding company known for its acquisitions in the gaming industry, has announced a major transformation. It will divide into three distinct, publicly listed companies: Asmodee Corp, Coffee Stain & Friends, and Middle-Earth Enterprises & Friends.
Each company will concentrate on a specific core strategy:
–
Asmodee Corp
: Distribution and publishing of tabletop games–
Coffee Stain & Friends
: Indie and mid-budget PC and console games–
Middle-Earth Enterprises & Friends
: AAA game development, including licenses such as Tomb Raider and The Lord of the RingsThis move is designed to enhance focus and long-term growth for each entity. Embracer Group CEO Lars Wingefors emphasizes the company’s commitment to supporting entrepreneurs and creators.
However, Embracer’s business practices have faced criticism in the past. It has acquired over 100 game companies in a short period, sparking speculation about its motives. After a failed $2 billion deal, Embracer underwent a restructuring program involving layoffs and project cancellations.
As part of the transformation, Asmodee Group has secured a €900 million financing agreement to repay existing debt and reduce leverage. This loan is secured solely by Asmodee’s assets, with no recourse to the other Embracer entities.
Lars Wingefors intends to remain as CEO despite the company’s previous challenges. He states that he intends to fulfill his 25-year commitment made at the IPO in 2016. However, some have questioned his leadership in light of Embracer’s past actions.
