Embracer Group

Mr. Underhill wrote:

Yes, I think those estimates were thought up with what Disney paid for LucasFilm and Marvel Comics in mind. (Around $4 Billion each)

This sale places the IP more on par with the Harry Potter deal, which I believe Universal paid $225 Million for.

Embracing disaster | Opinion
In the absence of the low-interest economic climate that created it, the recklessness and unsustainability of Embracer Group’s aggressive acquisition strategy is laid bare

STOCKHOLM (Reuters) -Swedish gaming group Embracer said on Monday it plans to split into three separate companies listed on the Stockholm bourse.

Embracer said in a statement the three companies will be called Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.

"Middle-earth Enterprises & Friends is intended to remain within the current listed company Embracer Group, which will subsequently be renamed," it said.

Embracer said it plans to list Asmodee, which it bought in 2022, within 12 months, and to list Coffee Stain & Friends in 2025.

"As part of the Asmodee separation process, Embracer Group has, through Asmodee Group, entered into a new financing agreement amounting to 900 million euros ($960 million)," the company said.

The proceeds would partly be used to repay debt in the remaining Embracer Group, it added.

($1 = 0.9377 euros)

(Reporting by Anna Ringstrom, editing by Terje Solsvik)

‘Lord of the Rings’ Owner Embracer Reports 10% Drop in Entertainment Sales, Blames Tolkien IP for ‘Lower Activity’

Embracer has reported disappointing results for the second quarter of 2024, reporting a large drop in net sales of 21% across the gaming group to SEK 8.6 billion ($782 million), with net sales of its entertainment and services also dropping by 10%.

Adjusted operating profit fell by 33% to $109 million between July and September 2024, missing projected forecasts.

In its entertainment and services division, which also includes comic book publisher Dark Horse Media, Embracer reported a 14% drop in organic growth, which it put down to “lower activity and tough comparison figures year on year” within subsidiary Middle-earth Enterprises, the holding company for “Lord of the Rings.”

Embracer to spin off Coffee Stain Group – remaining business to be renamed Fellowship Entertainment

Embracer will at the time of spin-off of Coffee Stain Group be renamed Fellowship Entertainment (previous working name “Middle Earth & Friends”). Fellowship Entertainment will be uniting top creators and intellectual properties, fostering creativity to build unforgettable experiences for the fans. The strategy is to transform into one powerhouse group with game development and publishing at its core, complemented with transmedia capabilities within IP licensing, comics, merchandise, film and distribution. In total, Fellowship Entertainment will have approximately 6,000 employees across more than 30 countries. The group will be steward of the commercial rights to J.R.R. Tolkien’s work The Hobbit and The Lord of the Rings, as well as intellectual properties Kingdom Come Deliverance, Metro*, Dead Island, Killing Floor, Darksiders, Remnant and Tomb Raider, amongst more than 300 other gaming IPs.

Fellowship Entertainment will consist of companies such as 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos-Montréal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, PLAION, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, and Warhorse Studios amongst more than 40 other companies.