The major franchises moving to Fellowship Entertainment

Fellowship Entertainment will take stewardship of some of Embracer’s most recognizable franchises and licensed properties. These include:

• The Lord of the Rings and The Hobbit (Middle‑earth)
• Tomb Raider
• Kingdom Come: Deliverance
• Metro
• Dead Island
• Darksiders
• Remnant

These franchises represent some of Embracer’s most prominent IP assets and are expected to form the backbone of the new company’s entertainment strategy.

The company will bring together studios and teams responsible for developing and expanding these franchises, creating a centralized structure focused on growing their reach across multiple entertainment formats.

An IP‑led strategy built around licensing and partnerships

A key pillar of Fellowship Entertainment’s business model will be expanding licensing opportunities around its legacy franchises.

Embracer said the new company will combine game development, publishing, and licensing capabilities within a single organization to increase the value of its intellectual property.

Licensing is expected to play a particularly important role. According to company statements, the licensing business—building on the Middle‑earth Enterprises operation—will be “at the heart” of the strategy, supporting partnerships across games, media, and merchandise tied to major franchises.

The goal is to turn existing IP into broader entertainment ecosystems rather than relying solely on individual game releases.

Why Embracer is splitting the business

Chairman Lars Wingefors said the spin‑off is designed to sharpen strategic focus and allow each business to pursue its own growth path.

The separation is intended to:

• Increase management focus on key IP and development studios
• Unlock value that the company believes is not fully reflected in its current structure
• Give each entity a clearer strategy and accountability

Wingefors described the move as a way to better capture the combined potential of Embracer’s franchises, developer talent, and fan communities.

While the company confirmed Fellowship will operate with its own strategy and business plan, detailed financial targets or specific AAA release schedules were not disclosed at the time of the announcement.

What remains with the existing Embracer group

After the spin‑off, Embracer will continue as a separate publicly listed company with a more decentralized structure and its own strategic priorities.

Some operations will remain within the continuing Embracer organization, including its mobile games business, which will retain studios such as:

• DECA Games
• CrazyLabs
• A Thinking Ape

These studios manage a large portfolio of live‑service and mobile titles and will remain grouped together under Embracer rather than moving to the new IP‑focused company.

Overall, the restructuring will leave Embracer operating alongside the newly created Fellowship Entertainment as two distinct businesses with different strategic focuses.

What the spin‑off means for the industry

If completed as planned, the 2027 listing would create a new publicly traded company built around some of the gaming industry’s most recognizable franchises. By concentrating development, publishing, and licensing around those properties, Fellowship Entertainment aims to turn its IP portfolio into a broader entertainment platform spanning games, media, and partnerships.

For Embracer, the move represents another major step in its ongoing restructuring—separating its businesses into focused entities designed to operate with clearer strategies and stronger accountability.

The major franchises moving to Fellowship Entertainment

Fellowship Entertainment will take stewardship of some of Embracer’s most recognizable franchises and licensed properties. These include:

• The Lord of the Rings and The Hobbit (Middle‑earth)
• Tomb Raider
• Kingdom Come: Deliverance
• Metro
• Dead Island
• Darksiders
• Remnant

These franchises represent some of Embracer’s most prominent IP assets and are expected to form the backbone of the new company’s entertainment strategy.

The company will bring together studios and teams responsible for developing and expanding these franchises, creating a centralized structure focused on growing their reach across multiple entertainment formats.

An IP‑led strategy built around licensing and partnerships

A key pillar of Fellowship Entertainment’s business model will be expanding licensing opportunities around its legacy franchises.

Embracer said the new company will combine game development, publishing, and licensing capabilities within a single organization to increase the value of its intellectual property.

Licensing is expected to play a particularly important role. According to company statements, the licensing business—building on the Middle‑earth Enterprises operation—will be “at the heart” of the strategy, supporting partnerships across games, media, and merchandise tied to major franchises.

The goal is to turn existing IP into broader entertainment ecosystems rather than relying solely on individual game releases.

Why Embracer is splitting the business

Chairman Lars Wingefors said the spin‑off is designed to sharpen strategic focus and allow each business to pursue its own growth path.

The separation is intended to:

• Increase management focus on key IP and development studios
• Unlock value that the company believes is not fully reflected in its current structure
• Give each entity a clearer strategy and accountability

Wingefors described the move as a way to better capture the combined potential of Embracer’s franchises, developer talent, and fan communities.

While the company confirmed Fellowship will operate with its own strategy and business plan, detailed financial targets or specific AAA release schedules were not disclosed at the time of the announcement.

What remains with the existing Embracer group

After the spin‑off, Embracer will continue as a separate publicly listed company with a more decentralized structure and its own strategic priorities.

Some operations will remain within the continuing Embracer organization, including its mobile games business, which will retain studios such as:

• DECA Games
• CrazyLabs
• A Thinking Ape

These studios manage a large portfolio of live‑service and mobile titles and will remain grouped together under Embracer rather than moving to the new IP‑focused company.

Overall, the restructuring will leave Embracer operating alongside the newly created Fellowship Entertainment as two distinct businesses with different strategic focuses.

What the spin‑off means for the industry

If completed as planned, the 2027 listing would create a new publicly traded company built around some of the gaming industry’s most recognizable franchises. By concentrating development, publishing, and licensing around those properties, Fellowship Entertainment aims to turn its IP portfolio into a broader entertainment platform spanning games, media, and partnerships.

For Embracer, the move represents another major step in its ongoing restructuring—separating its businesses into focused entities designed to operate with clearer strategies and stronger accountability.