Embracer to Spin Off Fellowship Entertainment in Major Restructuring

Embracer Group is preparing another major restructuring step, announcing plans to spin off Fellowship Entertainment as a separate publicly listed company. The new entity is expected to list on Nasdaq Stockholm in 2027, subject to shareholder approval and customary conditions.

Fellowship Entertainment is being positioned as an IP-led entertainment business built around some of Embracer’s most valuable franchises. Its portfolio will include major properties such as The Lord of the Rings, Tomb Raider and Kingdom Come: Deliverance, with a clear focus on game development, publishing and licensing. In practical terms, Embracer is separating its biggest global entertainment assets into a company designed to give them more strategic attention, stronger leadership focus and clearer market identity.

The remaining Embracer business will move in a different direction: leaner, more disciplined and focused on profitability, cost control and selected niche opportunities. Areas such as retro gaming, physical distribution, remakes, remasters, mobile and other specialized segments are expected to remain central to its future strategy.

Leadership will also shift with the new structure. Current Embracer CEO Phil Rogers, COO Lee Guinchard and CFO Müge Bouillon are expected to move into equivalent roles at Fellowship Entertainment, while Embracer has already started the search for new executive leadership.

This move is not just another corporate split. It signals Embracer’s attempt to simplify a complex group, unlock the value of its strongest IP, and build two businesses with clearer priorities. After years of acquisitions, restructuring and pressure from investors, the company is now betting on sharper focus over scale.