Embracer Group will separate into two publicly listed companies by spinning off Fellowship Entertainment on Nasdaq Stockholm in 2027.
The move means Embracer Group—which has become something of a layoff specialist in recent years—will preside over four standalone segments: Fellowship Entertainment, Coffee Stain & Friends, Asmodee, and Embracer.
That’s one more than initially envisioned when the company announced a sweeping restructure in 2024.
Fellowship Entertainment is being positioned as an “IP-led entertainment company” built around game development, publishing, and licensing. The spinoff will become the custodian of major properties such as Darksiders, Dead Island, Kingdom Come Deliverance, Metro, Remnant, The Hobbit, The Lord of the Rings, Tomb Raider, and others
In a note to investors, Embracer Group said the separation will provide “sharper management focus and clearer accountability.”
“I am truly excited about Fellowship Entertainment’s prospects to organically grow substantially over the coming years. I am equally optimistic about the potential of the deep portfolio and selective M&A opportunities for a more focused Embracer,” said Embracer Group chair, Lars Wingefors.
Fellowship is building a multi-year pipeline that will see the segment attempt to deliver at least two major game releases starting in FY2027/28.
The spin off will house the following studios and franchises: 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games and Warhorse Studios.
Fellowship will also create a new publishing group that will include employees from Plaion, the parent company of Kingdom Come publisher Deep Silver.
Following the spin-off, the new-look Embracer segment will be afforded more flexibility to “pursue accretive but opportunistic bolt-on M&A” to refocus around “sizeable niches” such as mobile, distribution, retro, and remakes and remasters.
“Embracer will be a natural home for proven entrepreneurs and creative talents, supported by a more efficient structure, with enhanced governance, tighter cost control, and disciplined capital allocation. This will be combined with optionality from structural initiatives, including a continued focus on profitability and M&A, to drive shareholder value,” continues the announcement.
Embracer will remain the home of notable studios and businesses including Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, PLAION Partners, PLAION Pictures, THQ Nordic (including 35 studios and subsidiaries), Tripwire and Vertigo Games.
It will also retain ownership of franchises such as Arizona Sunshine, Biomutant, Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, REANIMAL, Ride, Screamer, Titan Quest, Wreckfest, and others.
Embracer Group CEO Phil Rogers—who stepped into the role in August 2025—will remain in charge until Fellowship completes its spin-off. At that point, he will take charge of the new segment as CEO.
The recruitment process for a new CEO of Embracer has been initiated and is expected to conclude before Fellowship Entertainment is spun off.
