The Swedish holding company Embracer Group announced its intention to restructure the business by splitting into three independent public companies - Asmodee Group, Coffee Stain & Friends and Middle-earth Enterprises & Friends. Ukrainian studio 4A Games will remain part of one of these new companies.
Embracer Transformation
New Players
According to the announcement, each of the three newly created companies will have a separate field of activity and set of assets. Asmodee Group will focus on publishing and distributing board, card and digital games, holding the rights to numerous popular franchises. Coffee Stain & Friends will specialize in the development of indie games, premium projects for PC/console and mobile, as well as free-to-play games. Instead, Middle-earth Enterprises & Friends will be responsible for creating AAA games for PC and consoles, controlling well-known intellectual properties such as Tomb Raider, Lord of the Rings, Dead Island and others.
The fate of the Ukrainian "daughter"
Ukrainian video game developer 4A Games, creator of the Metro series, will remain under the wing of one of the newly formed companies after the restructuring is completed. The Embracer Group demerger process is expected to take between 12 and 24 months, with holding company shareholders receiving shares in each of the three new companies in proportion to their current holdings.
Exit from the Russian market
In addition to restructuring, Embracer Group also announced its exit from the Russian market and the sale of the Saber Interactive subsidiary for $247 million. Ukrainian developer Fractured Byte will transfer to a new owner. However, 4A Games will likely avoid such a fate and retain its rightful place in the updated holding structure.
Glossary
- Embracer Group is a Swedish holding company specializing in the development and publishing of video games.
- 4A Games is a Ukrainian video game development studio known for the Metro series.
- Asmodee Group is an upcoming company that will focus on board games and own the rights to Ticket to Ride, 7 Wonders, Azul, Catan and other franchises.
- Coffee Stain & Friends is an upcoming company whose focus will be indie games, premium projects and free games for various platforms.
- Middle-earth Enterprises & Friends is an upcoming AAA game development company that owns the rights to Tomb Raider, Lord of the Rings, Dead Island, and more.
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Answers to questions
How many companies is Embracer Group divided into?
Which company will the Ukrainian studio 4A Games belong to after the distribution?
What franchises and intellectual properties belong to Asmodee Group?
What types of gaming product will Coffee Stain & Friends focus on?
What famous game franchises and studios will Middle-earth Enterprises & Friends own?
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Discussion of the topic – Embracer Group is divided: Ukrainian 4A Games remains, Russians will not get a studio
The Swedish holding company Embracer Group AB, which specializes in the development and publishing of video games, has decided to split into three separate companies. Ukrainian studio 4A Games will remain in the structure of one of them and will not transfer to Russian owners.
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Oksana
Such news! Embracer Group appears to be undergoing a major restructuring. 🤔 I wonder how this will play out on our favorite games and franchises.
Nils
Restructuring always brings change. But it's good that the Ukrainian studio 4A Games remains in Middle-earth Enterprises & Friends - they are developing Metro. 💪 This is a guarantee that their future games will not suffer.
Émilie
It is wonderful that the Ukrainian studio is protected from Russian influences. They have released as many quality projects as Metro and deserve support. 🇺🇦 I wonder what new Coffee Stain & Friends will prepare for indie developers.
Piotr
Coffee Stain's Valheim blew me away last year. Will it not turn out that after the restructuring they will pay more attention to the mainstream AAA-projects, and the individuality of the games will suffer? 😕
Катерина
There was information that the separation will last from one to two years. This is quite long, but should provide a smooth transition and stability. 🤞 However, there are concerns about preserving creativity and originality within individual companies.
Йоахім
And what will happen to other Ukrainian studios that worked with Saber Interactive? In fact, Embracer is leaving the Russian market. But this should not affect their internal environment and teams 🤔
Григорій
Just talking about games 🙄 I think such steps will help games not lose quality due to bad decisions. And what about maintenance of already released projects? How will the restructuring affect them? 🤷 ♂️
Élodie
Gregorij, indeed, the restructuring may affect the support of existing games. However, the statement made it clear that Embracer Group shareholders would receive shares in the new companies as dividends. Therefore, it will be beneficial for them to maintain their entire product portfolio. 💰
Alessandro
I'm just glad that the studios with Ukraine are protected from the Russians. They make incredible games like Metro and deserve the best future. 🇺🇦💙💛 And I welcome news about game internal corporate matters with caution.
Ганна
It's great that among the new structures is a company that will deal with AAA projects for PC and consoles. With franchises like Tomb Raider, Lord of the Rings and Metro. It promises modern high-quality games! 🎮✨
Пилип
I don't understand why they split into three companies? 🤨 It would seem that everything was working well at the Embracer Group. Now it's just more bureaucracy and coordination between units. I hope this does not affect the quality of the final product.
Pablo
I am also skeptical about this step. But at least Ukrainian teams are protected. 4A Games makes fantastic shooters and I'm glad they're staying with Middle-earth Enterprises & Friends. 🇺🇦💪
Марія
It amazes me how many famous franchises and intellectual property are now owned by the Embracer Group! From Catan to Star Wars. I think that the division into separate companies will allow each division to focus on its areas. 🤓
Артем
And let's not forget the realm of indie games and shareware models for Coffee Stain. Deep Rock Galactic, Valheim, Goat Simulator - it's great to have a company that specializes in such unique content. 🎉
Наталя
Did anyone mention Wild West and Tombstone? 🤠 I'm kidding. Overall, it's interesting to see how the gaming industry moves and transforms. Perhaps over time these new structures will become more flexible and efficient.