Embracer to rename as Fellowship Entertainment after Coffee Stain Group spin-off

Embracer Group is set to spin off Coffee Stain Group into a standalone company of game developers and publishers by the end of 2025. 

The move is part of Embracer’s broader transformation strategy, following the earlier separation of Asmodee. The split-off into three separate, publicly traded companies came after years of layoffs and closures sparked by the collapse of a $2 billion investment from Savvy Games Group.

Meanwhile, Embracer Group will be renamed to Fellowship Entertainment, renamed from the previously tentative title of ‘Middle-Earth & Friends’.

Embracer said it will distribute shares in Coffee Stain Group to its shareholders, with the intention of listing the new company on the Nasdaq First North Premier Growth Market in Stockholm. 

Coffee Stain Group will now consist of over 250 game developers and publishers focused on community-driven experiences. 

The group would comprise Coffee Stain, Ghost Ship, Tuxedo Labs, and select studios from Amplifier Game Invest, all based in Scandinavia with Westbergh serving as Group CEO.

IPs it will retain include Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim, and Welcome to Bloxburg

“Scary, but in a good way"

Fellowship Entertainment aims to focus on game development and publishing in future, along with a transmedia strategy spanning IP licensing, comics, merchandise, film and distribution to unite creators and IPs to craft fan experiences with a core focus on game development and publishing.

Its broader strategy includes transmedia efforts in licensing, comics, merchandise, film, and distribution. 

The company will employ approximately 6,000 people across over 30 countries. It will hold the commercial rights to major franchises like J.R.R. Tolkien’s The Lord of the Rings and The Hobbit, as well as Kingdom Come Deliverance, Metro, Killing Floor, Tomb Raider, Dead Island, and more.

Its studios will include 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos-Montréal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, Plaion, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, and Warhorse Studios amongst more than 40 other companies.

"We're really proud of everything we've built as part of Embracer, and grateful for the support and trust we've received over the years," said Group CEO and co-founder of Coffee Stain Anton Westbergh. 

“Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary but in a good way.

“The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms. 

“We can now focus even more on what we do best-supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain."