Embracer is set to spin off major franchises, including “The Lord of the Rings” and “Tomb Raider”, into a newly formed holding company, Fellowship Entertainment, after chair Lars Wingefors described its intellectual property as “among the most undervalued in the industry.”
Wingefors said in a shareholder letter that “I think the assets held by Fellowship Entertainment are among the most undervalued in the industry, iand I feel it’s my duty as the largest shareholder to change this and create a structure to realise their full potential,” adding that the new entity would operate as an “IP-led entertainment company” focused on publishing, licensing and brand development.
Fellowship Entertainment is expected to be listed on Nasdaq Stockholm in 2027, supported by a stronger product pipeline that year. This includes Prime Video’s “Tomb Raider” series starring Sophie Turner, scheduled for early 2027, and Warner Bros.’ “The Lord of the Rings: The Hunt for Gollum,” directed by Andy Serkis, is set for release in December.
Wingefors also noted the aim of attracting “a larger pool of international investors,” alongside increased external licensing. Comics publisher Dark Horse, known for “Hellboy” and “Sin City,” will sit under the new licensing unit.
Meanwhile, Embracer will shift focus toward mobile, PC and console gaming, physical distribution, collectables, and film distribution.
He added: “Game development spend is our largest cost item across the group.” and “I am painfully aware that the value creation has been negative since the peak pandemic years,” while expressing confidence that “With that said, I am confident that today’s announced changes will enable more and faster shareholder value creation than keeping it in the current structure.”
Leave a Reply