Famed mass-layoff-manufacturing corporation Embracer Group has recently announced its decision to divide into three separate companies, each of which will be individually listed on Sweden’s stock exchange. The three companies in question are: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
The announcement of this corporate restructuring comes on the heels of Embracer Group’s massive cost-cutting efforts over the past year. According to the company, the decision to divide into separate entities was the result of a “careful and thorough review” aimed at simplifying equity stories, attracting a larger pool of investors, and optimizing operational strategies and financial profiles.
Under the new structure, each of the three companies will have the autonomy to fully utilize its own balance sheet, financial targets, and growth ambitions. Coffee Stain & Friends will focus on a wide variety of games for PC, console, and mobile, including community-driven free-to-play games, LiveOps games, and indie/AA games. On the other hand, Middle-earth Enterprises & Friends will take charge of various licenses such as Dead Island, Killing Floor, Kingdom Come Deliverance, The Lord of the Rings, Metro, and Tomb Raider.
It is worth noting that Embracer Group will retain a significant stake in all three entities, with CEO and co-founder Lars Wingefors emphasizing the company’s commitment to remaining a long-term, active, and supportive owner. The company’s restructuring efforts also involve selling off certain subsidiaries, such as Saber Interactive and Gearbox, to new owners.
After months of mass layoffs, studio closures, and project cancellations, Embracer Group’s decision to reorganize its business operations marks a new chapter in the company’s history. While the future remains uncertain, the company has signaled that its restructuring efforts are now complete, with no further major layoffs or closures anticipated in the near future.
Embracer Group’s decision to divide into three separate entities reflects a strategic shift in its corporate structure. By creating distinct companies focused on different segments of the gaming industry, Embracer Group is positioning itself for future growth and success in an increasingly competitive market. Only time will tell whether this bold move will pay off, but one thing is certain – the gaming industry will be watching closely.
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