‘Lord of the Rings’ owner Embracer Group is splitting into 3 different companies

Embracer Group, the embattled gaming conglomerate that owns the rights to ‘The Lord of the Rings’ franchise, has announced it is splitting into three separate companies. The group, which underwent significant restructuring this year and sold off major game studios such as Saber Interactive and Gearbox to reduce debt, will be separated into Asmodee Group, Coffee Stain & Friends and Middle-Earth Enterprises & Friends. The three games and entertainment companies will be standalone, publicly listed entities, Embracer said, with the split “allowing each entity to better focus on its respective core strategies and offer more differentiated and distinct equity stories to existing and new shareholders.” Will be made capable.”

Announcement A lengthy restructuring process followed for Embracer, which led to the closure of three studios, the sale of two studios, and massive layoffs across Embracer-owned entities. In a press release, the company also confirmed that the Middle-earth Enterprises & Friends unit will retain the intellectual property rights for The Lord of the Rings and Tomb Raider franchises and will remain within Embracer Group, which will be renamed over time .

Additionally, shares of Esmody and Coffee Stain & Friends will be paid as dividends to Embracer shareholders and listed on Nasdaq Stockholm. In the case of Esmody Group, Embracer has also entered into a new financing agreement amounting to EUR 900 million (approximately Rs 7,991 crore). The company said the proceeds from the financing process will be used to settle Embracer’s debts and reduce leverage.

Under the transition plan, Esmody will continue to operate as a tabletop game publisher and distributor and retain the rights to its IP. Coffee Stan & Friends, on the other hand, “will maintain a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile,” the company said.

“This move is made with the intention of unleashing the full potential of each team and providing them with their own leadership and strategic direction,” Embracer Group CEO Lars Wingfors said in the release. He said, “This is the beginning of a new chapter, one that I look forward to continuing to be a part of as an active, committed and supportive shareholder of all three new entities with Evergreen Horizons.”

Asmody has 23 studios that own the IP rights to popular tabletop, board and card games like 7 Wonders, Catan, Exploding Kittens and others. According to Embracer, Asmodee is overseeing the development of licensed tabletop games based on Lord of the Rings, Marvel, Game of Thrones, Netflix, Lego, and Star Wars.

Coffee Stain & Friends will operate under separate ‘Premium’ and ‘Free to Play’ segments with collaborations from studios such as Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, THQ Nordic, and Amplifier Game Invest. The premium segment owns the IP rights to popular games like Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, Valheim and others. The free-to-play side of the operation will include EasyBrain, Decca, CrazyLabs and Cryptic and IPs such as Sudoku.com, Blockudoku, Jigsaw Puzzles and more.

Middle-earth Enterprises & Friends, on the other hand, intends to “remain a creative powerhouse in AAA game development and publishing for PC/consoles”, with a focus on Lord of the Rings, Tomb Raider, and other major IPs. The entity will house leading game studios such as Crystal Dynamics, Dambuster Studios, Eidos-Montreal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios and 4A Games, which owns IPs such as Dead Island, Killing Floor, Kingdom Come Deliverance, The Will have rights. Lord of the Rings, Metro and Tomb Raider.

After years of spending that saw Embracer acquire several game studios and IP rights, the company went into damage control mode last year after a $2 billion (roughly Rs. 16,672 crores) investment deal with Saudi Arabia-based Sevi Group failed. . Embracer made significant restructuring efforts this year to pay off more than $1.5 billion of debt, sales Rockstar Games exits parent Take-Two Interactive and Gearbox disenfranchised Saber Interactive in March. In the restructuring process Embracer spun off operations at Saints Row developer Volition Games, TimeSplitters studio Free Radical Design, and newly formed studio Campfire Cabal.