Embracer Group to transform into three separate companies – Asmodee Group,

Since its inception, Embracer Group has grown into a global group of creative and entrepreneurial businesses in PC, console, mobile and other related media. This has been possible through the Group’s decentralized operating model, where great entrepreneurs run operations as part of 11 operative groups—each with their own distinctive heritage, intellectual properties, branding, business strategy, and operations. Embracer Group’s strategy has been built around backing entrepreneurs and creators within gaming and entertainment with the ambition to achieve soft synergies from its expanded eco-system. The Group has an extensive catalog of over 9003 fully owned or controlled franchises, including some of the most popular and iconic titles in gaming, comics, and other media. The current structure and model have served the Group well and have been of paramount importance in building a global group with operations in more than 40 countries.

During the past years, the Group has made significant investments in acquisitions and into a strategy of accelerated organic growth. To further realize the untapped potential in Embracer Group and better optimize the use of its resources, Embracer Group announced a restructuring program in June 2023 divided into different phases lasting until March 2024. Focus of the program has been cost savings, capital allocation, efficiency and consolidation, while also divesting selected studios.

Following a careful and thorough review, it is the assessment of the Board of Directors that the current Group structure does not create optimal conditions for future value creation both for Embracer Group’s shareholders and other stakeholders. To continue the transformation of Embracer Group into the future for the benefit of all employees, gamers and shareholders, the Board of Directors and the executive management have therefore decided to propose a separation of Embracer Group, creating three separate publicly listed entities: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.

The Board of Directors have concluded the following:

• The entities will have sufficient scale, coupled with clearer operational strategies and financial profiles that enable simplified equity stories to attract a larger pool of investors. Current shareholders can freely decide on their capital allocation between the three entities.
• Each entity will be able to fully utilize its own balance sheet, its own set of financial targets and…