The gaming giant Embracer Group is shaking things up with a major restructure that will reshape its future. Coffee Stain Group, known for hits like Goat Simulator and Deep Rock Galactic, will become an independent, publicly listed company on Nasdaq First North Premier Growth Market in Stockholm by the end of 2025.
At the same time, the rest of Embracer’s sprawling portfolio—currently dubbed “Middle-earth Enterprises & Friends”—will be renamed Fellowship Entertainment. A new holding company, Embracer AB, will hold significant stakes in Coffee Stain, Fellowship Entertainment, and Asmodee Group, focusing on long-term growth and strategic support.
This move marks a significant shift in the organization’s structure, reflecting growing ambitions to sharpen focus and empower the distinct identities of their diverse gaming operations.
Coffee Stain’s Bold Leap Into Independence
Coffee Stain Group’s co-founder and CEO Anton Westbergh spoke candidly about the new chapter. “It feels both exciting and, honestly, a little bit scary—but in a good way,” he said in the company’s press release. The phrase really captures the mood of many in the gaming world when a company takes this kind of bold step.
With over 250 developers under its wing, including Coffee Stain Studios, Ghost Ship Games, and Tuxedo Labs, Coffee Stain has grown into a powerhouse. Their lineup of games is a fan favorite, spanning genres and communities. Titles like Valheim, which exploded in popularity and stayed relevant, speak to Coffee Stain’s ability to back innovative and community-driven projects.
Westbergh emphasized the need for clarity and control, saying that the spinoff will give Coffee Stain “the clarity and control to navigate the landscape better on our own terms.” This means more focus on supporting developers and engaging communities, which are key in an industry where player loyalty can make or break a game.
Is it risky? Sure. But sometimes, taking the plunge can be just what a company needs to thrive.
Fellowship Entertainment: A New Identity for Embracer’s Core
While Coffee Stain strikes out solo, the rest of the company’s expansive empire stays together, just under a new banner: Fellowship Entertainment. The name alone hints at a group united around some of gaming’s most treasured properties.
This includes studios and publishers such as 4A Games, Aspyr Media, Crystal Dynamics, Eidos Montreal, and THQ Nordic—big names with deep catalogs. Fellowship will also hold commercial rights to J.R.R. Tolkien’s The Hobbit and The Lord of the Rings, adding a certain weight and cultural clout.
The portfolio is impressive and sprawling, with over 300 video game properties under its umbrella. Think Metro, Tomb Raider, Kingdom Come Deliverance, and Dead Island. A gaming buffet, if you will.
The goal? To maintain a powerhouse that can invest in existing hits while discovering new gems, all while preserving iconic brands that have been beloved for years.
The Structural Shake-Up: What It Means for Shareholders and the Market
Embracer’s detailed plan for this transformation is as carefully plotted as a game storyline. Coffee Stain Group shares will be distributed to Embracer shareholders via what’s called a Lex ASEA dividend—basically, a way to spin off the new company by distributing shares instead of cash.
The spin-off process is expected to wrap by the end of 2025, pending approvals from Embracer’s general meeting and Nasdaq. Coffee Stain’s current A and B dual share classes will be carried over into the new company, keeping existing ownership structures intact.
Fellowship Entertainment will stay listed on Nasdaq Stockholm, ensuring investors still have exposure to the bulk of Embracer’s operations after the split.
The newly created Embracer AB holding company will be privately held by the largest shareholder Lars Wingefors AB. It will play an active role supporting Coffee Stain, Fellowship, and Asmodee Group, with potential for future expansions in gaming-related businesses.
| Aspect | Coffee Stain Group | Fellowship Entertainment | Embracer AB (Holding) |
|---|---|---|---|
| Number of studios | 4 major studios + Amplifier Game Invest studios | Over 40 studios and publishers | N/A (Holding company) |
| Key IPs | Deep Rock Galactic, Goat Simulator, Valheim | The Hobbit, Lord of the Rings, Tomb Raider | N/A |
| Listing | Nasdaq First North Premier Growth Market | Nasdaq Stockholm | Private company |
| Shareholder Structure | Dual share class A and B carried over | Remains as is | Controlled by Lars Wingefors AB |
Lars Wingefors, Embracer co-founder and CEO, expressed confidence in the decision. He called Coffee Stain “a true recipe for success,” praising the team’s talent and strategic vision. “I see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents.”
His words underline the growing trend in gaming where smaller, nimble studios benefit from independence and sharper focus, while larger groups maintain the muscle to manage vast portfolios.
With the industry getting ever more competitive, these kinds of moves can help companies stay relevant without losing their unique identity or innovation spark.
As for Coffee Stain, the future looks bright but challenging. The company’s emphasis on community and developer support could be the key to holding its edge. Fans and investors alike will be watching closely as the new independent company finds its footing.
The broader market will be keen to see how Fellowship Entertainment leverages its massive collection of franchises and whether Embracer AB’s hands-on approach will pay dividends in a shifting industry.
