Embracer to split into two companies, creating Fellowship IP unit

Embracer Group announced plans to split into two publicly listed companies, spinning off its major intellectual properties into a new entity called Fellowship Entertainment. The separation, detailed in an open letter from chairman Lars Wingefors on May 20, is intended to sharpen management focus and unlock the value of the company's extensive portfolio.

Fellowship Entertainment will be listed on the Nasdaq Stockholm main market in 2027. It will serve as an "IP-led entertainment company" concentrating on game development, publishing, and licensing for franchises including Tomb Raider, The Lord of the Rings, Kingdom Come Deliverance, Metro, Dead Island, Darksiders, and Remnant. The new company will house studios such as Crystal Dynamics, Eidos-Montréal, Warhorse Studios, and 4A Games.

The remaining Embracer entity will focus on a more efficient structure, tighter cost control, and disciplined capital allocation. It will retain businesses operating in areas like mobile games, distribution, and retro titles, including studios such as Aspyr, THQ Nordic, and Limited Run Games.

A central component of Fellowship's strategy involves a new IP licensing business unit. Wingefors stated the...