![Lord of the Rings: Return of the King](https://deadline.com/wp-content/uploads/2023/10/MCDLOOF_EC164.jpg?w=1024)
New Line/Offering: Everett Collection
A company that owns the intellectual property rights of Lord of the Ring Franchise is dividing the business.
Embracer Group has announced plans to split into three businesses: game publisher Asmodee Group, indie game label Coffee Stain & Friends, and Middle-earth Enterprises & Friends. Lord of the Ring and tomb raider right.
The companies will be listed on the Stockholm Stock Exchange Nasdaq, but Middle Earth Enterprises & Friends will remain part of the currently listed Embracer Group, which will change its name. Embracer also has a €900 million ($959 million) financing agreement with Asmodee, part of which will be used to repay debt.
CEO Lars Wingefors, Embracer’s largest shareholder, is planning a “new long-term ownership structure” and will continue to invest in “the long-term, proactive, committed and will continue to be a supportive owner. Shareholders representing more than 50% of the capital and votes support this plan.
Since June last year, Embracer has been undertaking a restructuring program focused on cost reduction, capital allocation, efficiency and consolidation, while also divesting the following businesses: borderlands Franchise owner Gearbox Entertainment joins Take-Two Interactive. The company owns or manages his 9,003 franchises in areas such as comics and games.
Middle-earth Enterprises & Friends focuses on game development, publishing, and game management for PC and consoles. Lord of the Ring and tomb raider franchise. Embracer claimed the new structure would allow it to be “better positioned to maximize the potential of our highly strategic franchise”.
It houses several game levels and owns IP, including Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games. dead island, killing floor and metro.
Phil Rogers will assume a leading role in Middle-earth Enterprises & Friends during the process leading up to the split. He is currently interim Group Chief Strategy Officer, responsible for the completed restructuring program and CEO of the operating group Crystal Dynamics – Eidos. The operating group CEOs of multiple labels said today that they will report to him.
As for future developments, Mr. Rogers, Mr. Stephen Carville and Mr. Anton Westberg will be appointed to the management team of Embracer Group. Mr. Wingefors will continue as Group CEO, Johan Ekström will become Group CFO and Deputy CEO, Carine Yap will become Chief Strategic Partnerships Officer, and Ian Graham will become Chief of Staff for Legal and Governance.
Sweden-based Embracer acquires IP owner Middle Earth Enterprises of Lord of the Ring and hobbit In August 2022, it paid approximately $400 million.Amazon acquires TV rights Lord of the Ring In 2017, they spent $1 billion on the five-season series. Lord of the Rings: Ring of Fire It will launch on the streamer in September 2022. Season 2 is expected to launch this year.
Read Embracer Group CEO Wingefors’ open letter here.
everyone,
My journey started over 30 years ago trading comic books to collectors and I have always dreamed of building something meaningful and important. For me, building a business is not about reaching a certain size or status, but a journey of many small and sometimes a few big steps that turn into something bigger. Today is clearly the day we take another big step. I can’t wait to imagine what will happen in the coming decades. At his IPO in 2016, I promised stakeholders that we would last at least 25 years, but we still have 17 years to achieve that.
It hasn’t always been a smooth road, but I’m extremely proud of the accomplishments made possible by thousands of talented people who create great content that entertains millions of people around the world. I am. Embracer now has some of the best companies and IP in the games and entertainment industry, and it is my duty to ensure the best possible conditions for continued success.
I am convinced that the best is still ahead of us.
History has shown that a diverse group like ours can significantly increase its chances of success by taking a more agile, fast-moving approach and focusing on clearly defined core market segments. I am.
A number of inspiring examples from Sweden show how large companies have achieved great success by splitting into several separate specialized companies. I am deeply motivated and inspired by these success stories and believe they provide valuable insight for our company’s unique strategic direction. The time has come for Embracer to become three publicly traded companies, each with sufficient scale, coherent strategies, specialized business models, and empowered by visionary leadership teams. Rather than imposing conformity on thriving companies, we need to foster an environment that amplifies existing successes. I believe this would be easier if there were three different winning formulas for specific market segments.
Asmodee is the planet’s leading developer, publisher, and distributor of tabletop games. Coffee Stain & Friends will be the leading and most innovative developer of community-driven games for PC/Console and Mobile. Middle-earth Enterprises & Friends will leverage its in-house AAA capabilities and strong partnerships to develop immersive, world-class entertainment IP, including the iconic Lord of the Rings.
I have always viewed my role as Group CEO and Main Owner as a champion for successful entrepreneurs, game makers and business leaders to achieve greater success.
This remains the same.
Today I also communicate my intention to form a new long-term ownership structure. This includes Embracer’s current holdings (representing approximately 20% of the capital and 40% of the voting rights). I intend to remain a long-term, active, committed and supportive owner of all three entities. This structure is based on the values and ideas on which Embracer was founded: trust, long-term thinking, and a desire to continue to embrace different perspectives.
There is more than one way to do business, but some business models are more similar than others. The same goes for business people. The ambitions may be similar, but the approaches are different. The similarities between Asmodee’s constituent businesses, Coffee Stain & Friends and Middle-earth Enterprises & Friends, are striking, but so are the differences when it comes to go-to-market strategies and business profiles. All companies have a bright future ahead of them if they continue to perfect what works well and collaborate where necessary.
I am confident that there is huge untapped potential within the Group and that the new structure will unlock it. This enables each individual and each team to grow and excel in their career, and provides unique leadership and strategic direction.
This is the beginning of a new chapter, and I intend to remain a part of it as an active, committed and supportive shareholder in all three new organizations with an eternity in mind. The transition to three independent companies strengthens Embracer’s vision to support entrepreneurs and creators with a long-term mindset and enable us to continue delivering unforgettable experiences and entertainment around the world. .
In particular, I would like to thank all our employees who have helped us through the challenges so far. Today is the first day of a new journey. Let’s travel together and create the future.
This is the beginning of a new chapter.
Sincerely,
Lars Wingefors