Embracer Group has announced that Fellowship Entertainment will be spun off into its own company, which will house a number of major IPs including Tomb Raider and The Lord of the Rings.
Set to be established next year, Fellowship Entertainment will take over the reins of franchises such as Darksiders, Dead Island, Kingdom Come Deliverance, Metro, and Remnant. Among the development studios falling under the Fellowship umbrella include 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montreal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Reddoctane Games, and Warhorse Studios.
Embracer Group meanwhile will function as a decentralised outfit that will oversee a number of IPs including Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, Reanimal, Ride, Screamer, Titan Quest, and Wreckrest. It will also oversee the Hot Wheels Unleashed and SpongeBob SquarePants.
A number of studios will remain with Embracer, including Aspyr Media, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, Plaion Partners, Plaion Pictures, THQ Nordic, Tripwire, and Vertigo Games.
Embracer Group Chairman of the Board, Lars Wingefors, told shareholders in a letter than the one of the main decisions to spin-off Fellowship is “to increase management focus to capture the full joint potential of the IPs, their respective communities and some of the best game developers in the world.”
Just like Asmodee and Coffee Stain, we believe Fellowship Entertainment will thrive the most by becoming its own standalone business. I think the assets held by Fellowship Entertainment are among the most undervalued in the industry and I feel it’s my duty as the largest shareholder to change this and create a structure to realize their full potential. I’m convinced that Fellowship Entertainment could reach industry leading profitability and show healthy long-term organic growth above the industry average.
Back in May last year, Embracer Group announced plans to rebrand Middle-Earth and Friends as Fellowship Entertainment, while Coffee Stain & Friends was listed as a separate company.
[Source – Wario64 on X, VGC]