Embracer Group Corporate Restructuring Plan to Spin Off Assets into Fellowship Entertainment and Legacy Banner for Strategic Stability and Improved Investor Clarity
Embracer Group has a corporate restructuring plan designed to spin off the huge business conglomeration into 2 separate public companies. VGC is reporting that the process should be completed by next year, allowing a split of the most profitable commercial assets away from some of the more niche areas of the business to provide an easier to understand structure for developers and investors alike.
The new company, to be known as Fellowship Entertainment, will have direct management of some of the former conglomerate's biggest IPs. This "premium" arm of the business will manage IPs like Tomb Raider, Kingdom Come, Metro, Remnant, Darksiders and Dead Island, and will also gain all rights to and catalog properties associated with the mega IP Lord of the Rings. The idea here is to provide these properties with specific, and independent financial support and strategic objectives. Lars Wingefors (Embracer Group chairman of the board and biggest individual shareholder) has expressed optimism on this part of the business.
The other part of the business will continue to operate under the Embracer banner, dealing in mid tier releases and specialist back catalog projects, encompassing titles like Gothic, Killing Floor, Desperados, SpongeBob Squarepants, Titan Quest and Kingdoms of Amalur. While these more niche areas of the catalog will retain dedicated fan bases and income streams, they will no longer dominate the discourse surrounding the company. A sizable amount of studios and publishing labels will remain under the Embracer name including THQ Nordic (which alone has over 35 studios and subsidiary operations) as well as Publishers like Milestone, Vertigo Games, Tripwire, Plaion Pictures, Plaion Partners, Limited Run Games, Merchandising DPI, Demiurge, Deca, CrazyLabs, Beamdog and Aspyr, with each studio focusing on its respective area, designed to stabilise both parts of the business after years of aggressive acquisitions.
