Embracer Group spinning off Fellowship Entertainment

Embracer Group has announced its plans to separate the company into two publicly listed companies with the spinoff of Fellowship Entertainment. A listing on NASDAQ Stockholm is planned for 2027.

The reason for this split of Embracer is to “further increase management to focus on capturing the full potential of the high-quality assets in the group and accelerate value creation.”

Fellowship will be an IP-led entertainment company built around game development, publishing, and a licensing focus.

Here is how the split will look:

• Fellowship Entertainment, an IP-led entertainment company built around game development, publishing and a licensing focus, as the stewards of The Lord of the Rings, Tomb Raider and many other great intellectual properties.
  • Net Sales SEK of 4,393 million on an illustrative historical basis in FY 2025/26 and a total headcount of 2,169 as of 31 March, 2026.
• Embracer, a natural home for proven entrepreneurs, supported by a more efficient structure, with enhanced governance, tighter cost control, and disciplined capital allocation.
  • Net Sales SEK of 11,544 million on an illustrative historical basis in FY 2025/26 and a total headcount of 3,518 as of 31 March, 2026.

“Our direction is clear: to build a more disciplined group with two distinct businesses, each with a mandate and a structure that supports transparency and execution. I am confident that this is the right path forward to deliver long-term value for our fans, our businesses and IPs, our people, and our shareholders”, says Phil Rogers, CEO of Embracer Group.

The background and strategy behind this move, per Embracer, is to enable Fellowship Entertainment to accelerate the formation of a group of world-class studios with leading publishing and licensing capabilities.

Fellowship Entertainment will oversee the following studios: 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 Entertainment aims to create a new publishing group, operationally consolidating the talents from PLAION and other parts of the group. IPs include Darksiders, Dead Island, Kingdom Come Deliverance, Metro, Remnant, The Hobbit, The Lord of the Rings, Tomb Raider, and many more.

In other news today, Warhorse Studios revealed they are working on a new Kingdom Come and open-world Lord of the Rings title.