Embracer Group, the Swedish-based video game and media holding company that owns Lord of the Rings, Asmodee, Dark Horse Comics, and more, is going through major changes. The large organization is dividing into three companies: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.

Asmodee will publish and distribute tabletop gaming with a studio network and catalogue of IPs. Coffee Stain & Friends will focus on indie and A/AA premium (mid-sized video games) and free to play mobile and PC/console games. Middle-earth Enterprises & Friends will develop and publish AAA games (video games from major publishers with higher budgets for development) for console and PC. The Lord of the Rings and Tomb Raider IPs as well as Dark Horse Comics will fall under Middle-earth Enterprises & Friends.

Asmodee is expected to be the first to split off within the next year, followed by Coffee Stain & Friends. Then the remaining Embracer Group company will be renamed Middle-earth Enterprises & Friends.

Each of the three entities will have new leadership. Though they are splitting, Embracer stated that the companies will continue to collaborate, which includes Asmodee’s license for Lord of the Rings IPs.

Embracer Group spent several years purchasing gaming and media rights that included Dark Horse and Lord of the Rings. Then in 2023, the large company started restructuring, consolidating, and shutting down some of their game studios, leading to the announcement of their split into the three new companies.

“This transformation is an important step in unlocking shareholder value,” Embracer board chair Kicki Wallje-Lund said. “With this new structure, the three entities will be able to focus on executing their core strategies and leveraging their own strengths, providing more differentiated and distinct equity stories to both existing and new shareholders. After careful evaluation of various strategic alternatives, we strongly believe that this decision will benefit all stakeholders and position us for continued success in the future.”