Embracer to spin off Fellowship Entertainment in 2027

Embracer Group announced plans to spin off Fellowship Entertainment into an independent company in 2027. The new unit will focus on games built around established intellectual property and will take direct responsibility for several major franchises.

Fellowship will oversee The Lord of the Rings/Middle-earth, Tomb Raider, Kingdom Come: Deliverance, Dead Island, Darksiders, Remnant and Metro, Embracer said. The publisher added that the unit will also explore partnerships and opportunities for dormant or lesser-used series, listing Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief and TimeSplitters as titles it is interested in investigating.

Founder and largest shareholder Lars Wingefors framed the reorganization as a way to increase management focus and align the business around entertainment brands and creative teams. In the company statement, Wingefors wrote: “The main rationale to spin-off Fellowship is to increase management focus to capture the full joint potential of the IPs, their respective communities and some of the best game developers in the world. Just like Asmodee and Coffee Stain, we believe Fellowship Entertainment will thrive the most by becoming its own standalone business.” He added that he views Fellowship’s assets as undervalued and that creating a separate company is a way to realize more value.

Embracer said the new structure should give Fellowship greater autonomy over development and licensing decisions. The company set 2027 as the target year for the formal separation but did not disclose financial targets or provide specific project timelines for individual titles.

Wingefors also addressed Embracer’s recent workforce reductions, noting in the statement that the company “have worked hard to retain as many people as possible through a very difficult period, while balancing the needs to drive a profitable business operation.”