Chris Kerr, Senior Editor, NewsMay 22, 20252 Min ReadImage via Embracer GroupEmbracer Group has detailed how the next stage in its plan to split into three standalone, publicly-listed companies will unfold.Last year, the Swedish conglomerate ended a period of studio closures, divestments, and layoffs by announcing it would partition its business into three units: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friend.After carving out Asmodee and saddling it with debt, the company has confirmed it intends to spin off Coffee Stain Group and rename its remaining business Fellowship Entertainment."Embracer today announces its intention to spin-off Coffee Stain Group (previous working name Coffee Stain & Friends) into a standalone group of community-driven game developers and publishers by the end of calendar year 2025," reads an investor update."The shares in Coffee Stain Group will be distributed to the shareholders of Embracer, and are intended to be listed on the Nasdaq First North Premier Growth Market in Stockholm. At the same time, Embracer Group AB are planned to be renamed Fellowship Entertainment (previous working name Middle Earth & Friends)."Embracer pledges to create "unforgettable experiences" after cutting ties with thousands of workersCoffee Stain Group will consist of over 250 game developers and publishers such as Coffee Stain, Ghost Ship, and Tuxedo Labs. It will also house certain studios from Amplifier Game Invest.Related:Coffee Stain CEO and co-founder Anton Westbergh will lead the group and become the steward of popular franchises including Deep Rock Galactic, Goat Simulator, Satisfactory, Valheim, Teardown, and Welcome to Bloxburg.Embracer's remaining business will be renamed Fellowship Entertainment and intends to unite top creators and intellectual properties to "build unforgettable experiences" for players.Fellowship will comprise 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos-Montréal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, PLAION, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, Warhorse Studios, and more than 40 other companies.In total, the rebranded business unit will employ roughly 6,000 people in over 30 countries. The group will control the commercial rights to The Hobbit and The Lord of the Rings and game franchises like Kingdom Come Deliverance, Dead Island, Tomb Raider, and over 300 other IPs.Embracer Group CEO Lars Wingefors will continue to oversee all three business entities by establishing a privately held holding company called Embracer AB that will "act as an active and supportive long-term shareholder" of Asmodee Group, Coffee Stain Group, Fellowship Entertainment, and "potentially other companies."Related:Read more about:Embracer GroupAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like