Gaming giant Embracer Group is undergoing a massive transformation. The company announced a plan to split into three separate entities, which includes spinning off its successful Coffee Stain Group as an independent company. The rest of its major studios and IPs will be rebranded as Fellowship Entertainment. This strategic move aims to give each unit a clearer focus and empower their distinct operations in the competitive gaming market.
Coffee Stain’s Leap into Independence
Coffee Stain Group, the creative force behind massive hits like Goat Simulator and Deep Rock Galactic, is preparing to stand on its own. The plan is for the group to become an independent, publicly listed company on Nasdaq First North Premier Growth Market in Stockholm.
Anton Westbergh, the co-founder and CEO of Coffee Stain, described the feeling as “exciting and, honestly, a little bit scary.” This move is designed to give the company more direct control over its future. With independence, Coffee Stain aims to better navigate the industry on its own terms, focusing on developer support and community engagement.
The group includes talented teams like Coffee Stain Studios, Ghost Ship Games, and Tuxedo Labs. Their success with community-driven titles such as Valheim shows a clear ability to identify and support games that capture the loyalty of players worldwide. This spin-off is a calculated risk, but one that could lead to even greater innovation and growth.
Meet Fellowship Entertainment: A New Powerhouse
While Coffee Stain charts its own course, the majority of Embracer’s assets will unite under a new name: Fellowship Entertainment. This new entity will be a true giant, holding the rights to some of the most iconic properties in entertainment.
Fellowship Entertainment’s portfolio is staggering. It will manage over 40 studios and publishers, including well-known names like Crystal Dynamics, Eidos Montreal, and THQ Nordic. Crucially, it will also hold the commercial rights to J.R.R. Tolkien’s The Hobbit and The Lord of the Rings, giving it immense cultural and financial weight.
The collection of video game properties under its control includes over 300 titles. Some of the major franchises are:
- Tomb Raider
- Metro
- Dead Island
- Kingdom Come Deliverance
The primary goal for Fellowship Entertainment is to leverage this vast catalog to invest in existing hits while continuing to develop new and exciting games.
The Nuts and Bolts of the Restructure
The split is more than just a name change; it’s a carefully planned corporate reorganization with significant implications for shareholders. The spin-off of Coffee Stain Group will be accomplished through a Lex ASEA dividend. This means current Embracer shareholders will receive shares in the new Coffee Stain company directly.
Fellowship Entertainment will continue to be listed on Nasdaq Stockholm, allowing investors to remain invested in the core of Embracer’s current operations. The entire process is expected to be finalized by the end of 2025, pending necessary approvals. A new, privately held holding company named Embracer AB will be created to support the long-term strategy of all three entities: Coffee Stain, Fellowship Entertainment, and Asmodee Group.
| Aspect | Coffee Stain Group | Fellowship Entertainment | Embracer AB (Holding) |
|---|---|---|---|
| Key IPs | Deep Rock Galactic, Goat Simulator, Valheim | Lord of the Rings, Tomb Raider, Metro | N/A |
| Listing | Nasdaq First North Premier | Nasdaq Stockholm | Private Company |
| Structure | Independent Company | Rebranded Embracer Core | Strategic Holding Company |
Future Outlook for the New Entities
Lars Wingefors, co-founder and CEO of Embracer, expressed strong confidence in the plan. He praised the Coffee Stain team, calling their model “a true recipe for success.” This move reflects a broader industry trend where large publishers are creating more focused and agile structures to stay competitive.
The restructure allows smaller, creative studios like those under Coffee Stain to operate with more freedom, while the larger Fellowship Entertainment can focus on managing its massive portfolio of blockbuster franchises. Fans and investors will be watching closely to see how each company thrives in its new environment. Coffee Stain’s success will depend on its ability to continue nurturing its developer-first culture, while Fellowship’s challenge will be to effectively manage and grow its enormous collection of beloved brands.
Frequently Asked Questions
What is happening to Embracer Group?
Embracer Group is restructuring into three separate companies. Coffee Stain Group will become an independent public company, the remaining gaming studios will be rebranded as Fellowship Entertainment, and a new holding company, Embracer AB, will oversee strategic interests.
Will I lose my Embracer shares?
No. Existing Embracer shareholders will receive shares in the newly independent Coffee Stain Group through a special dividend. They will also retain their investment in the core business, which will become Fellowship Entertainment and remain listed on Nasdaq Stockholm.
What are the biggest games owned by Fellowship Entertainment?
Fellowship Entertainment will control a massive library of games, including major franchises like Tomb Raider, Metro, Dead Island, and the rights to The Lord of the Rings and The Hobbit.
When will the Coffee Stain spin-off be complete?
The process of making Coffee Stain Group an independent, publicly listed company is expected to be completed by the end of 2025, subject to shareholder and regulatory approvals.
Who will run the new companies?
Anton Westbergh will continue to lead Coffee Stain Group as CEO. The leadership for Fellowship Entertainment and the new Embracer AB holding company will be built from the existing Embracer Group management, with Lars Wingefors playing a key strategic role.
