Embracer intends to spin off its Coffee Stain Group into a “standalone group of community-driven game developers and publishers” by the end of 2025.

The company announced it would split into three individual companies – Asmodee, Coffee Stain and Friends, and Fellowship Entertainment (previously known as Middle Earth & Friends) – in April 2024.

In this case, Coffee Stain Group – which will consist of “more than 250 passionate game developers and publishers, focused on community driven experiences” – will include Coffee Stain, Ghost Ship, and Tuxedo Labs as well as “certain studios” from Amplifier Game Invest, all based in Scandinavia. Anton Westbergh, CEO and co-founder of Coffee Stain, will become Group CEO.

“The shares in Coffee Stain Group will be distributed to the shareholders of Embracer, and are intended to be listed on the Nasdaq First North Premier Growth Market in Stockholm. Fellowship Entertainment (current Embracer Group) will remain listed on Nasdaq Stockholm and have around 6000 employees across 30 countries, “stewarding” the commercial rights to J.R.R. Tolkien’s works, as well as IPs like Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant, and Tomb Raider.

“We’re really proud of everything we’ve built as part of Embracer, and grateful for the support and trust we’ve received over the years. Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary – but in a good way,” said Anton Westbergh, co-founder and Group CEO of Coffee Stain.

The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms. We can now focus even more on what we do best – supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain.

Lars Wingefors, co-founder and Group CEO of Embracer, added: “Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success. I am confident in Anton’s strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents.”

Earlier today, we reported THQ Nordic’s studio Campfire Cabal has returned after being shuttered in 2023. Announcing the news, the developer disputed it had ever “shut down” despite closing as part of THQ Nordic’s parent company Embracer’s restructuring efforts.