Embracer Group has announced its intention to split into three separate public companies focused on games and entertainment. The new companies will be named Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
These three companies will focus on different segments of the gaming and entertainment markets:
- Asmodee Group - a publisher and distributor of board games with a network of studios (will have 23 independent studios) and a catalog of intellectual property (over 300 IP assets).
- Coffee Stain & Friends - a diverse gaming organization focusing on indie and premium A/AA games and free games for PC/consoles and mobile devices, with a high degree of regular revenue.
- Middle-earth Enterprises & Friends - a creative center for developing and publishing AAA games for PC and consoles, as well as managing projects under the intellectual property of "The Lord of the Rings," "Tomb Raider," and others.
It was revealed in the press release that as of now, the studio 4A Games still belongs to Embracer - more specifically to Middle-earth Enterprises & Friends, where it will continue to work on AAA projects. Earlier reports suggested that Saber decided to take 4A Games with them. Bloomberg received a copy of a letter to company employees from CEO Matt Karch, stating that they were acquiring 4A Games. However, this has not happened yet.
Middle-earth Enterprises & Friends will be home to many well-known studios, including Crystal Dynamics, Dambuster Studios, Eidos-Montreal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games. The intellectual property of this company includes Dead Island, Killing Floor, Kingdom Come Deliverance, The Lord of the Rings, Metro, Tomb Raider, and many others. The group will include PLAION, Freemode, Dark Horse, and other companies.
Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends will be separate companies listed on the stock exchange, allowing each organization to better focus on its respective core strategies and provide more differentiated and clear stock stories for existing and new shareholders. This will allow the companies to unlock the value of Embracer Group's high-quality assets after the successful completion of the restructuring program.
Shares of Asmodee Group and Coffee Stain & Friends are intended to be distributed as dividends among Embracer Group shareholders and listed on the Nasdaq Stockholm exchange in accordance with regulatory rules. Middle-earth Enterprises & Friends is planned to remain within the current Embracer Group, which will be renamed later. As part of the separation process, Embracer Group through Asmodee Group has entered into a new financial agreement amounting to €900 million. The funds from the financing will be used to repay existing debt and reduce leverage in the remaining Embracer Group.
Source: venturebeat
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