Embracer Will Spin-Off 'Fellowship Entertainment' Into Its Own Company

Published: Wednesday, May 20, 2026 at 9:30 am

Embracer Group to Spin Off Entertainment Division

Embracer Group, a major player in the video game industry, has announced plans to spin off its entertainment division, tentatively named Fellowship Entertainment, into a separate company by 2027. The move, according to Embracer founder Lars Wingefors, is designed to "increase management focus" and unlock the full potential of the intellectual properties (IPs) held within the division.

Fellowship Entertainment will be responsible for a portfolio of well-known game franchises, including *The Lord of the Rings/Middle-earth*, *Tomb Raider*, *Kingdom Come: Deliverance*, *Dead Island*, *Darksiders*, *Remnant*, and *Metro*. The new company also intends to explore partnerships to revive dormant series such as *Saints Row*, *Legacy of Kain*, *Deus Ex*, *Red Faction*, *The Mask*, *Thief*, and *TimeSplitters*.

Wingefors believes that Fellowship Entertainment's assets are currently undervalued and that the spin-off will allow the company to achieve industry-leading profitability and sustainable growth. He emphasized that the decision mirrors the successful separation of other Embracer subsidiaries, such as Asmodee and Coffee Stain.

The announcement comes as Embracer Group has faced scrutiny regarding its workforce management. Wingefors addressed the company's history of layoffs, stating that Embracer has worked to retain as many employees as possible during a challenging period while maintaining a profitable business.

BNN's Perspective:

The spin-off of Fellowship Entertainment presents both opportunities and risks. While the move could allow for greater focus and potentially unlock the value of these valuable IPs, it also raises questions about the long-term strategy of Embracer Group. The success of Fellowship Entertainment will depend on its ability to navigate the competitive gaming market and effectively manage its diverse portfolio of franchises. It will be interesting to see how this plays out over the next few years.

Keywords: Embracer Group, Fellowship Entertainment, spin-off, video games, IPs, The Lord of the Rings, Tomb Raider, Dead Island, Darksiders, Saints Row, Deus Ex, Lars Wingefors, industry, profitability, growth

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