Embracer Group, a leading gaming publisher, has announced a restructuring of its business into three publicly traded entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. The latter will manage the Lord of the Rings franchise under the current Embracer Group banner, which is due to be renamed.
This reorganization follows a €900M ($959M) finance agreement secured with Asmodee, geared towards debt repayment. Embracer’s CEO, Lars Wingefors, proposed this restructure to encourage sustainable growth and maximize shareholder value. Approximately half of the capital and voting representatives have supported the proposal, demonstrating strong investor confidence.
Since last June, Embracer has focused on cost-cutting measures, capital management, and productivity enhancements across its array of 9,000+ franchises. The Middle-earth Enterprises & Friends Group will focus on game development and publishing for PC and console, specifically handling franchises such as Lord of the Rings and Tomb Raider.
Embracer’s strategic restructuring for growth
The reinvestment strategies and corporate restructuring will continue to emphasize Embracer’s central operations.
The proposed structure is expected to optimize franchise potential by hosting well-known gaming studios such as Crystal Dynamics, Dambuster Studios, Eidos-Montréal, and Flying Wild Hog Studios. Each sector will have a dedicated team responsible for maximizing performance, fostering innovation, and ensuring efficient utilization of respective gaming rights.
Phil Rogers, Interim Group Chief Strategy Officer, will spearhead the division of the businesses at Middle-earth Enterprises & Friends. He will also oversee several label operating group CEOs. Stéphane Carville and Anton Westbergh will join Embracer Group’s executive management board, while the existing leadership remains unchanged.
In 2022, Embracer procured the rights to the Lord of the Rings franchise, foreseeing exciting potential for Middle-earth-centric content, including possible video game adaptations. This follows the launch of the Amazon TV series, ‘Lord of the Rings: The Rings of Fire,’ which debuted in September 2022 and is expected to release its second season this year.
Amid these changes, CEO Wingefors reassured his commitment to Embracer, planning on staying for another 17 years. He expressed faith in the success of his dedicated team, emphasizing the necessary adaptability and risk-taking involved in thriving conglomerates like Embracer.
