Embracer Group has announced its intention to split into three different publicly traded games and entertainment companies. The new companies will be called Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
The three companies will focus on different segments of the games and entertainment markets:
- Asmodee Group is a publisher and distributor of board games with an extensive network of studios (it will have 23 independent studios) and an intellectual property catalog (over 300 intellectual property objects).
- Coffee Stain & Friends is a diverse gaming organization with a focus on indie and premium A/AA games and free-to-play games for PC/console and mobile devices, with a high degree of recurring revenue.
- Middle-earth Enterprises & Friends is a creative center for the development and publication of AAA games for PC and consoles, as well as the project manager of the intellectual property «The Lord of the Rings», «Tomb Raider», etc.
З press release it became known that as of now, 4A Games studio is still owned by Embracer — Middle-earth Enterprises & Friends, to be exact, where it will continue to work on AAA projects. Previously was reportedBloomberg reported that Saber had decided to take 4A Games with them. Then Bloomberg obtained a copy of a letter to the company’s employees, where CEO Matt Karch wrote that they were buying 4A Games. However, this has not happened yet.
Middle-earth Enterprises & Friends will be home to well-known studios, including Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games. The intellectual property of this company includes Dead Island, Killing Floor, Kingdom Come Deliverance, The Lord of the Rings, Metro, Tomb Raider and many others. The group will include PLAION, Freemode, Dark Horse and other companies.
Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends will be separate listed companies, allowing each organization to better focus on their respective core strategies and offer more differentiated and distinct shareholder stories to existing and new shareholders. This will allow the companies to unlock the value of Embracer Group’s high quality assets following the successful completion of the restructuring program.
The shares of Asmodee Group and Coffee Stain & Friends are to be distributed as dividends to Embracer Group shareholders and listed on Nasdaq Stockholm in accordance with regulatory rules. Middle-earth Enterprises & Friends is planned to remain part of the current Embracer Group company, which will be subsequently renamed. As part of the separation process, Embracer Group, through Asmodee Group, has entered into a new financing agreement for €900 million. The proceeds of the financing will be used to repay existing debt and reduce leverage in the remaining Embracer Group.
Source: venturebeat