Embracer Group Splits Into Two Companies, Fellowship Entertainment Spins Off
The split formalizes the separation of Embracer's most valuable IPs into a dedicated entity, signaling a permanent shift from the acquisition-driven growth model that defined the group's recent history.
Reporting from 3 sources: 4Gamer.net, GameBusiness.jp, Game Spark.
Sweden-based Embracer Group announced on May 20, 2026, a restructuring plan to split its business into two separate companies: Fellowship Entertainment and Embracer. The new company, Fellowship Entertainment, will focus on game development, publishing, and licensing centered on major intellectual properties including The Lord of the Rings, Tomb Raider, and Kingdom Come: Deliverance. Its subsidiaries are expected to include Crystal Dynamics, Eidos-Montréal, Warhorse Studios, 4A Games, Dambuster Studios, and Middle-earth Enterprises. The remaining Embracer entity will retain THQ Nordic, PLAION, Aspyr, Milestone, and Limited Run Games, along with IPs such as Titan Quest, Destroy All Humans!, Killing Floor, Gothic, Wreckfest, and Arizona Sunshine. The split aims to clarify management focus and accountability, according to Chairman Lars Wingefors and CEO Phil Rogers. Embracer Group intends to list Fellowship Entertainment on Nasdaq Stockholm during the 2027 calendar year. The move continues a broader restructuring trend that began in 2023, following years of aggressive acquisitions, studio closures, project reviews, and asset sales including Saber Interactive and Gearbox Entertainment.
The restructuring plan was announced via an Embracer Group press release on May 20. Chairman Lars Wingefors stated the purpose is to clarify management focus and accountability, strengthening organizational structure and leadership so each business can maximize its potential. CEO Phil Rogers added that the group is building a more disciplined structure of two independent entities, each with a clear mission and an organizational framework supporting transparency and execution.
Fellowship Entertainment will handle a slate that also includes The Hobbit, Metro, Dead Island, Remnant, and Darksiders. The Embracer side retains Biomutant, Desperados, Kingdom of Amalur, MX vs. ATV, REANIMAL, Ride, and Screamer among others. The spin-off is expected to list on Nasdaq Stockholm in calendar year 2027. The announcement follows Embracer's 2023 restructuring program, which led to studio closures, project cancellations, and the 2024 sale of Saber Interactive and Gearbox Entertainment.
Synthesized by Yomimono from the 3 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.