Embracer Group has announced that it is, once again, splitting itself up into separate companies, forming Fellowship Entertainment to be the new home for The Lord of the Rings, Tomb Raider, Dead Island and more. This company will be formed and hold an initial IPO in 2027.
In the statement to investors, founder and chair Lars Wingefors said, “The reality is that it has been difficult to easily communicate the Embracer story historically due to its mix of operational strategies and a combination of decentralization from HQ but part-centralization within operating groups. We are now forming two separate business segments with two different strategies. Fellowship will be one business segment with one strategy and business plan.”
And, uh… yeah. You’re not wrong. That was the problem in, like, 2019 or something.
Studios joining Fellowship Entertainment will include 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 (who just announced that they have a Middle-earth RPG in the works).
Among the IP that is heading across with them are the gaming IP for The Lord of the Rings, and then major franchises that include Tomb Raider, Darksiders, Dead Island, Kingdom Come Deliverance, Metro, and Remnant. Intriguingly, they also name-dropped that they will look to license classic IPs such as Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief, TimeSplitters and more using a new IP & licensing business within Fellowship.
Meanwhile, Embracer will hold onto studios, publishing labels and divisions 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.
This means that games from Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, Reanimal, Ride, Screamer, Titan Quest, Wreckfest, Hot Wheels Unleashed and SpongeBob SquarePants.
Wingefors continues, “Just like Asmodee and Coffee Stain, we believe Fellowship Entertainment will thrive the most by becoming its own standalone business.
“I think the assets held by Fellowship Entertainment are among the most undervalued in the industry and I feel it’s my duty as the largest shareholder to change this and create a structure to realize their full potential. I’m convinced that Fellowship Entertainment could reach industry leading profitability and show healthy long-term organic growth above the industry average.”
This isn’t, as alluded to, the first time that Embracer has split itself back into smaller parts, having split off Asmodee and Coffee Stain in 2024 and 2025. This was because, after splashing cash around through the 2010s and early 2020s, they hit upon financial difficulties when failing to secure Saudi investment back in 2023. This led to massive layoffs across the company – though Wingefors is trying really hard to retcon this based on subsequent actions, claiming that they avoided “a hard “US Corporate style” headcount reduction” and allowed companies to “prove themselves”. Yes, this did mean selling divisions like Saber Interactive and Gearbox, and branching off Asmodee and Coffee Stain, but diminishes the fact that thousands of jobs have actually been lost since 2023 – around 1,400 were cut in the year to June 2024 alone (~8% of the workforce at that time), around 1,800 then in the year to June 2025.
Source: Embracer via MFN
