Embracer Group, the entity behind the ‘Lord of the Rings’ franchise, is set to split into three distinct entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
Following this strategic reorganisation, all three arms will be independently listed on the Nasdaq Stockholm exchange. The core intention behind this significant shift is to streamline operations and boost efficacy while allowing greater creativity within their respective fields.
The newly minted division, Middle-earth Enterprises & Friends, will manage the ‘Lord of the Rings’ franchise. To aid its financial footing, a whopping investment contract of €900M ($959M) with Asmodee has been kick-started.
The restructuring scheme, which gained approval from major shareholders, is set to establish a long-term ownership structure. Importantly, Lars Wingefors, the receiving end of the largest shares and the company CEO, will remain a proactive investor in all divisions.
The restructuring process, which began the previous June, seeks to reduce costs and optimise capital distribution. It’s worth noting that Embracer holds a substantial range of 9,003 franchises that cross the expansive terrain of the comic and gaming industries, emphasising their far-reaching influence.
On the agenda for Middle-earth Enterprises & Friends is not only game development and publishing for PCs and consoles but also the governance of ‘Lord of the Rings’ and ‘Tomb Raider’ franchises.
Embracer Group’s strategic three-way split
Amongst them is a collection of acclaimed gaming developers, such as Crystal Dynamics, Dambuster Studios, and Eidos-Montréal. The steering wheel for the restructuring process is, however, in the hands of Phil Rogers.
Stéphane Carville and Anton Westbergh have come on board, supplementing Phil Rogers in leading the company. Meanwhile, Lars Wingefors remains the Group CEO. Complementing the troupe are Johan Ekström, Careen Yapp, and Ian Gulam, retaining their titles as Group CFO and deputy CEO, Chief Strategic Partnership Officer, and Chief of Staff, Legal & Governance respectively.
Back in 2017, Amazon made a significant plunge by purchasing TV rights for the ‘Lord of the Rings’ series, shelling out $1Bn for a five-season deal. With the title ‘Lord of the Rings: The Rings of Fire’, the series debuted on Amazon Prime in 2022 and holds promise for a second season scheduled for a 2024 release.
