Embracer Group are still going through some massive changes, after all their previous troubles and selling off multiple companies they're now splitting again.
It's been a really long road after Embracer Group grew a bit too fat and acquired one too many publishers, a story filled with shutting various studios and selling others off. Game industry consolidation is never a good thing for anyone. And now here we are - they're restructuring yet again!
Sent to the GamingOnLinux inbox early this morning May 20th, Embracer Group announced they're splitting off Fellowship Entertainment with a listing on Nasdaq Stockholm planned for calendar year 2027.
Fellowship will be "an IP-led entertainment company" that will deal with both publishing and IP licensing. Fellowship will have control over the likes of The Lord of the Rings and Tomb Raider along with being the home of all these: 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games and Warhorse Studios. They said Fellowship will also consolidate "the talents from PLAION and other parts of the group" with IP including Darksiders, Dead Island, Kingdom Come Deliverance, Metro, Remnant, The Hobbit, The Lord of the Rings, Tomb Raider and many more.
Those remaining directly with Embracer include: Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, PLAION Partners, PLAION Pictures, THQ Nordic (including 35 studios and subsidiaries), Tripwire and Vertigo Games. Intellectual properties include owned IPs such as Arizona Sunshine, Biomutant, Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, REANIMAL, Ride, Screamer, Titan Quest, Wreckfest, and many more IPs, as well as licenses such as Hot Wheels Unleashed and SpongeBob SquarePants.
From the press release:
“This separation is about sharper management focus and clearer accountability, giving each business the structure and leadership to realize more of its full potential. I am truly excited about Fellowship Entertainment’s prospects to organically grow substantially over the coming years. I am equally optimistic about the potential of the deep portfolio and selective M&A opportunities for a more focused Embracer. As Chair and major shareholder, I am strongly committed to support the preparations to drive value in two listed companies over the long-term”, says Lars Wingefors, Chair of the Board of Embracer Group.
“Our direction is clear: to build a more disciplined group with two distinct businesses, each with a mandate and a structure that supports transparency and execution. I am confident that this is the right path forward to deliver long-term value for our fans, our businesses and IPs, our people, and our shareholders”, says Phil Rogers, CEO of Embracer Group.
Further to that, in an open letter to the board, Lars Wingefors the Founder and Chair of Embracer Group AB mentioned clearly that their overall plan does include external IP licensing for the likes of Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief, TimeSplitters and many others.
So thanks to this, we might end up seeing some fresh additions to classics like Deus Ex and Red Faction from other developers. Sounds good, rather than just sitting on them doing nothing.
Article taken from GamingOnLinux.com.
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PlayingOnLinuxphone 7 hours ago
Many of those just joined THQ Nordic to have a stable income without to look for new contracts with every new game. They tried to avoid the situation where they want to produce their next game without finding a publisher spending money, which would be the end of their studio. But this situation leaded to the end of many studios after Corona when Life was going to become normal again. What a sad irony.
Embracer was a both bold and equally unrealistic endeavour. When the Saudi money dried up everything came crashing down. Hopefully Fellowship can succeed better as a separate entity. Metro, Tomb Raider, Deus Ex and especially Kingdome Come are great series and I hope the devs get some stability so they can focus on their work.
PlayingOnLinuxphone 3 hours ago
Quoting: eggrole[...] but I feel like those smaller projects (<50MM) could do better with a crowdfunding approach.In the case I wrote above those studios (not just one) already had a relationship with THQ Nordic for couple of projects. And so they trusted in THQN, while the publisher trusted in the studios. Many of them decided to tighten the work together to reduce risks. Nobody expected the knife of Embracer. The time around Corona was the time many people stayed at home and bought games. Embracer was buying studios at that time, because for some reason they believed the growth will continue (or at least stay) while after Corona people had to go back to work. Classic mismanagement which the weakest had to pay.
The issue was not that they did not crowdfund their projects, but to oversee that behind THQN is something bigger which is bound to the capital market.
Quoting: PlayingOnLinuxphoneA few years ago they even closed studios, because they wanted great numbers for their shareholders "now". They even closed profitable studios they could have continued to pay, that just did not bring the numbers right now (because too far away from release). That was a knife cutting half of the known studios in my country. Just spoke with a developer few days ago that was in one of these studios at the time under THQ Nordics banner.We will never see Elex 3 😭
Many of those just joined THQ Nordic to have a stable income without to look for new contracts with every new game. They tried to avoid the situation where they want to produce their next game without finding a publisher spending money, which would be the end of their studio. But this situation leaded to the end of many studios after Corona when Life was going to become normal again. What a sad irony.
Quoting: eggroleI think these mega group amalgamations are set up for failure.I don't think the Embracer Group was ever meant to be more than a quick bundling of IP so it could be sold for profit to the Saudis. Before that deal fell through they probably had no other plan at all.
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