Embracer keeps mobile in-house as it spins off Fellowship Entertainment

• Embracer will spin off Fellowship Entertainment, targeting a 2027 Nasdaq Stockholm listing.
• Q4 mobile sales dropped 28% to SEK 682m.
• The publisher said the divestment of Easybrain to Miniclip was largely behind the decrease in sales.

Embracer Group has revealed plans to split into two publicly listed companies, spinning off Fellowship Entertainment for a planned listing on Nasdaq Stockholm in calendar year 2027.

The mobile games business stays with the remaining Embracer entity rather than moving to the new IP-led company. That keeps DECA Games, CrazyLabs and A Thinking Ape under one roof, a unit Embracer describes as a "mobile games-asset care" specialism. 

The three studios run more than 600 staff and manage a catalogue of over 350 games, generating net sales of more than SEK 2.3 billion ($245 million) in FY 2025/26.

Mobile has been Embracer's softest segment with net sales falling 28% year-on-year to SEK 682m ($72.6m) in Q4, down from SEK 943m ($100.4m), with just 2% organic growth. The company said the decline was primarily driven by the divestment of mobile publisher Easybrain to Miniclip.

The full-year picture showed that mobile sales dropped 57% to SEK 2.3bn ($245m), against SEK 5.3bn ($564m) a year earlier. 

Embracer took impairment charges across its business as it sets out to break off into two companies. It took a SEK 1.81bn ($193m) impairment on its mobile division, a SEK 3.76bn ($401m) write-down on its PC/console segment, and SEK 253m ($27m) on entertainment and services. Overall, impairments totalled SEK 7.2bn ($767m).

Two companies, two strategies

Fellowship Entertainment will hold the prestige IP: The Lord of the Rings, Tomb Raider, Kingdom Come: Deliverance and Metro, plus studios including Crystal Dynamics, Eidos-Montréal and Warhorse. 

Under Embracer's 2025 plan, the surviving group was to be renamed Fellowship Entertainment after spinning off Coffee Stain, which listed separately in December 2025. 

The new structure keeps the Embracer name on the surviving group and instead spins off Fellowship Entertainment as a separate company. Embracer said the decision is based on learnings from the Asmodee and Coffee Stain spin-offs.

Müge Bouillon, currently Group CFO, is appointed deputy CEO of Embracer Group, effective immediately. Her stated responsibility is setting up the enhanced governance structure for the Embracer business segment.

Phil Rogers stays as Embracer Group CEO and Lee Guinchard stays as COO through to the spin-off, with the job of preparing Fellowship Entertainment for separation. At spin-off, both move across to Fellowship Entertainment, Rogers as CEO and Guinchard as COO, with Bouillon as CFO.

Embracer has started recruiting a new CEO and CFO for the remaining Embracer business, with appointments planned to be in place well ahead of the Fellowship spin-off.