Embracer Group Rebrands as Fellowship Entertainment, Splits Into Three Companies

Embracer Group continues to implement the plan it declared on April 22, 2024, which includes a split into three separate companies: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends – each of which is going to be listed as a separate company on Nasdaq Stockholm. Asmodee Group went public on February 7, 2025.

In a recent note for investors, Embracer Group revealed that Coffee Stain Group will separate from the holding company by the end of 2025. The shares of the new group are planned to be distributed among the current shareholders of Embracer Group. Coffee Stain will be headed by current leader Anton Westbergh and includes more than 250 employees. Coffee Stain itself, Ghost Ship Games, Tuxedo Labs, and certain Scandinavian studios of Amplifier Game Invest will be included in the new entity.

Besides that, Embracer Group itself is planned to be renamed Fellowship Entertainment (previous working name: Middle-earth & Friends) and will include developers such as 4A Games, CrazyLabs, Crystal Dynamics, Dark Horse, Eidos-Montréal, Limited Run Games, Middle-earth Enterprises, THQ Nordic, Vertigo Games, and Warhorse Studios, among more than 40 other companies. On top of that, Fellowship Entertainment will handle IPs such as The Lord of the Rings, Kingdom Come: Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Tomb Raider, and more.

The CEO and largest shareholder of Embracer Group, Lars Wingefors, will form a new private holding, Embracer AB, after the separation process is completed. This company will be a long-term shareholder in all three former parts of Embracer Group: Asmodee Group, Coffee Stain Group, and Fellowship Entertainment.

Notably, according to Embracer Group’s annual report for the last financial year (April 2024 — March 2025), the holding company’s revenue across all sectors decreased, but it still managed to gain a profit and achieve a net income.

Embracer Group’s annual revenue amounted to about $2.33 billion, showing an 18% year-on-year decrease. The holding company reported a net profit of approximately $265 million, while in the previous year, its losses exceeded $1.4 billion.

“According to the report at the end of March, Embracer Group had 7,180 employees, and following the spinoff of Coffee Stain Group at the end of 2025, this number will be approximately 6,000. It is worth noting that earlier this year, Embracer laid off 75 employees at Eidos-Montréal, the studio co-developing the upcoming Fable reboot.