Embracer shares soar 18% on plans to break company apart

Shares in beleaguered publisher Embracer Group soared by as much as 18% this morning as it unveiled plans to split into three separate publicly traded companies.

The company is set to spin-off its assets into tabletop publisher and distributor Asmodee, mid-sized specialist PC, console and mobile developer and publisher Coffee Stain & Friends, and triple-A outfit Middle-Earth Enterprises & Friends.

Shares closed Friday at 25.32 kr ($2.3), but rose to 29.95 kr ($2.7) on the news. However, shares still remain approximately 75% down from their all-time highs in April 2021.

Crisis point

The company has struggled with debts of $1.5 billion and the failure to close a $2 billion investment deal, reportedly with Savvy Games Group, to fuel its M&A strategy and production pipeline.

That failed deal sparked a crisis at the publisher, resulting in more than 1,000 layoffs and the sale of businesses such as Saber Interactive, Gearbox and now the three-way split of the entire company.

Asmodee is expected to list its shares within the next 12 months. Coffee Stain & Friends will split off later in 2025.

Shares of both companies will also be distributed as a dividend to Embracer Group shareholders.