Embracer Group announced they’re splitting off Coffee Stain Group into its own standalone group, alongside rebranding the remaining business to Fellowship Entertainment, which previously operated under the working name “Middle Earth & Friends.”
“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 Anton Westbergh, co-founder and Group CEO of Coffee Stain. “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.”
Anton added, “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.”
Co-founder and Group CEO of Embracer Lars Wingefors commented, “Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success. I am confident in Anton’s strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents.”
Coffee Stain Group will consist of more than 250 game developers and publishers across Coffee Stain, Ghost Ship and Tuxedo Labs as well as studios from Amplifier Game Invest, all based in Scandinavia. The Group’s IPs include Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim, and Welcome to Bloxburg.
Fellowship Entertainment will consist of companies such as 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.
The group will be handle the commercial rights to J.R.R. Tolkien’s work The Hobbit and The Lord of the Rings, as well as intellectual properties Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant and Tomb Raider, amongst more than 300 other gaming IPs.
Here’s a timeline of the transformation process for the companies:
- The shares in Coffee Stain Group will be distributed to the shareholders of Embracer, and are intended to be listed on the Nasdaq First North Premier Growth Market in Stockholm.
- The intention is to carry out the spin-off by way of a dividend distribution of all shares, a so-called Lex ASEA dividend. The current dual share class of A and B-shares will be replicated into the new public company. Subject to approval of the general meeting of Embracer to distribute the shares of Coffee Stain Group and an approval from Nasdaq, it is anticipated that a listing of Coffee Stain Group can be completed by the end of calendar year 2025.
- Fellowship Entertainment (current Embracer Group) will remain listed on Nasdaq Stockholm.
- Further details, including the capital structure of both Coffee Stain Group and Fellowship Entertainment, will be provided ahead of the spin-off
