Overview
- Embracer announced on Wednesday, May 20, 2026, that it will separate into two publicly listed companies by spinning off Fellowship Entertainment as an "IP‑led" business focused on development, publishing and licensing.
- Fellowship will take stewardship of major franchises including The Lord of the Rings, Tomb Raider, Metro, Darksiders and Dead Island and will house studios such as Crystal Dynamics, Eidos‑Montréal and 4A Games.
- The board plans to distribute Fellowship shares to Embracer shareholders using a Lex ASEA dividend and aims to list the new company on Nasdaq Stockholm in 2027 subject to shareholder approval and customary conditions.
- The move follows weak Q4 results that showed a 24% drop in net sales and a SEK 7.2 billion non‑cash impairment, with senior Embracer executives Phil Rogers, Lee Guinchard and Müge Bouillon preparing to lead Fellowship while recruitment begins for new Embracer leaders.
- Embracer frames the split as value creation and recovery from earlier rapid acquisition and 2023 restructuring, and says Fellowship will pursue licensing, transmedia deals and external partnerships to revive dormant series and deliver at least two major AAA releases annually from FY2027/28.