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What Happened to Embracer Group’s Plan to Split Into Three Companies?

Embracer’s three-business restructuring is partly complete: Asmodee and Coffee Stain Group separated in 2025, while Fellowship Entertainment’s proposed 2027 listing is still pending.
From TheFinanceBase Team4 min to read
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Embracer Group’s plan is partly complete: Asmodee and Coffee Stain Group became separate listed businesses in 2025. The remaining Embracer business, renamed Fellowship Entertainment, is the subject of a proposed spin-off and Nasdaq Stockholm listing in 2027. That listing is not yet complete and remains subject to shareholder approval and other conditions.

Is Embracer Group splitting up?

Yes, but not all at once. Embracer announced the three-business plan on April 22, 2024. It was an intention to reorganize the group, not a completed separation on that date. The plan envisioned distinct businesses for tabletop games, a varied games portfolio, and game development and entertainment intellectual property (IP).

The first two separations took place in 2025. In May 2026, Embracer proposed spinning off Fellowship Entertainment, the remaining business’s renamed successor, with a listing targeted for calendar year 2027. Embracer’s proposal remains subject to a general-meeting decision and customary conditions.

What companies are part of the Embracer split?

The 2024 announcement used “Coffee Stain & Friends” and “Middle-earth Enterprises & Friends” as working names. The businesses’ later names and current stages are different, so the original labels should not be read as three completed companies created at the same time.

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Asmodee Board games, trading cards, and digital board games Spin-off and listing on Nasdaq Stockholm took place February 7, 2025.
Coffee Stain Group Community-driven games, including indie and A/AA premium and free-to-play titles across PC, console, and mobile Class B shares began trading on Nasdaq First North Premier Growth Market on December 11, 2025.
Fellowship Entertainment Game development and publishing, plus licensing and other entertainment capabilities associated with its IP Proposed spin-off and Nasdaq Stockholm listing targeted for 2027; not completed.

The descriptions reflect Embracer’s announced business plans. They do not establish that the new structures will deliver particular financial or operational results.

How the separation unfolded

  1. April 22, 2024: Embracer announced its intention to create three standalone publicly listed businesses. Its proposed mechanics included distributing Asmodee and Coffee Stain & Friends shares to Embracer shareholders and listing those businesses, while the third business would initially remain within listed Embracer. Shareholder approval and customary conditions applied. Embracer’s announcement
  2. February 7, 2025: Asmodee’s spin-off and listing on Nasdaq Stockholm took place. Embracer’s interim reporting subsequently treated Asmodee as an asset held for distribution and a discontinued operation because the separation had occurred. Embracer’s Q3 FY 2024/25 report
  3. May 22, 2025: Embracer announced the next step: spin off Coffee Stain Group, previously called Coffee Stain & Friends, and rename the remaining business Fellowship Entertainment. The company then anticipated completing the Coffee Stain separation by the end of 2025, subject to approvals and customary conditions. Embracer’s announcement
  4. December 11, 2025: Coffee Stain Group’s class B shares began trading on Nasdaq First North Premier Growth Market. Embracer’s spin-off page
  5. May 20, 2026: Embracer proposed spinning off Fellowship Entertainment and targeting a Nasdaq Stockholm listing in calendar year 2027. The proposal requires a general-meeting decision and customary conditions; the company also said it would review the capital structures of both businesses before separation. Embracer’s proposal

What Fellowship Entertainment would include

The 2024 plan grouped AAA game development and publishing with stewardship of The Lord of the Rings and Tomb Raider IP under the working name “Middle-earth Enterprises & Friends.” In May 2025, Embracer described a wider business that would also encompass licensing, comics, merchandise, film, and distribution capabilities.

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In its May 2026 plan, Embracer presented Fellowship as an IP-led entertainment business with Development & Publishing and Licensing areas. The company said the licensing operation would focus on dedicated IP management and could generate recurring revenue across games, film, consumer products, and other areas. These are company descriptions and intentions, not independently established outcomes.

Embracer described its own remaining business as a home for entrepreneurial companies, reporting across PC/Console Games, Mobile Games, Entertainment & Services, and Other. Starting with Q1 FY 2026/27, it said it would report Fellowship Entertainment and Embracer as two business segments ahead of the proposed spin-off. Separate reporting segments do not mean Fellowship has already become a separately listed company.

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What the announced figures do—and do not—show

Embracer’s May 2026 announcement gave illustrative historical figures for the proposed businesses. The figures below are company-published, not independent statistics, and are not results from two already-separated listed companies.

Business in Embracer’s 2026 announcement Net sales Headcount
Fellowship Entertainment SEK 4,393 million, FY 2025/26 illustrative historical basis 2,169 people as of March 31, 2026
Embracer SEK 11,544 million, FY 2025/26 illustrative historical basis 3,518 people as of March 31, 2026

Those figures describe the proposed business groupings on the stated bases; they do not by themselves show how either business will perform after a separation.

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Why did Embracer propose the breakup?

Embracer’s CEO Lars Wingefors said in the April 2024 open letter that the time was right for the group to become three public companies, each with sufficient scale, coherent strategies, specialized business models, and empowered leadership teams. In May 2026, Chair Lars Wingefors described the proposed Fellowship separation as a way to sharpen management focus and clarify accountability.

These statements explain the company’s rationale; they are not evidence that the restructuring has already increased value, efficiency, or accountability. The cited announcements do not independently establish those effects. Wingefors’s April 2024 letter

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What shareholders should keep in mind

  • Two separations are complete: Asmodee and Coffee Stain Group began trading separately in 2025.
  • Fellowship’s proposed 2027 listing is a target, not a guaranteed date or completed transaction.
  • Embracer’s May 2026 proposal says the spin-off requires a general-meeting decision and customary conditions.
  • The 2026 figures are historical and illustrative company figures, not forecasts or post-separation results.

For later status changes, Embracer’s investor reporting page lists company reports and updates: Embracer investor reports.

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