{"id":2424652,"date":"2026-05-20T11:44:18","date_gmt":"2026-05-20T11:44:18","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=2424652"},"modified":"2026-05-20T11:44:18","modified_gmt":"2026-05-20T11:44:18","slug":"embracer-group-announces-plans-to-spin-off-fellowship-entertainment","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/embracer-group-announces-plans-to-spin-off-fellowship-entertainment\/","title":{"rendered":"Embracer Group announces plans to spin-off Fellowship Entertainment"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Embracer Group has released its fourth quarter and full-year financial results, along with plans to spin off Fellowship Entertainment as a new publicly listed company.<\/p>\n<p>Fellowship Entertainment will concentrate on its premium IP and development portfolio, including Kingdom Come: Deliverance, Tomb Raider, Metro, Dead Island, Darksiders, and Remnant.<\/p>\n<p>The company aims to release at least two major games annually beginning in FY 2027\/28.<\/p>\n<p>The remaining Embracer entity will focus on &#8220;a more efficient structure, tighter cost control, and disciplined capital allocation.&#8221;<\/p>\n<p>Embracer chairman Lars Wingefors discussed the decision further in <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/embracer.com\/releases\/open-letter-by-chair-of-the-board-on-the-fellowship-entertainment-spin-off\/\">an open letter to shareholders<\/a>.<\/p>\n<figure>\n <noscript><br \/>\n<br \/>\n<\/noscript><br \/>\n<img alt=\"\" data-autosize=\"crop_lossy\" data-lightbox=\"\" data-uri=\"Screenshot-2026-05-20-104207.png\" height=\"652\" loading=\"lazy\" style=\"aspect-ratio: 1.915644171779141\" width=\"1249\"\/><figcaption><span class=\"attribution\">Image credit: <cite>Embracer<\/cite><\/span><\/figcaption><\/figure>\n<p>Embracer will begin segment reporting in Q1 FY 2026\/27 to prepare for the split. Group CFO M\u00fcge Bouillon has also been appointed deputy CEO to strengthen governance.<\/p>\n<p>This announcement follows Embracer&#8217;s report of a 24% decline in fourth quarter net sales to SEK 3.9 billion ($414.5 million) and a non-cash impairment of SEK 7.2 billion ($765.2 million).<\/p>\n<p>This includes SEK 6 billion ($637.7 million) related to goodwill and M&amp;A intangibles, and SEK 1.2 billion ($127.5 million) for an unannounced ongoing AAA game project.<\/p>\n<p>Here&#8217;s what you need to know:<\/p>\n<h3><strong>The numbers<\/strong><\/h3>\n<p><em>Q4 (three months ended March 31, 2026)<\/em><\/p>\n<ul>\n<li><strong>Net sales: <\/strong>SEK 3.93 billion ($414.5 million, down 24%)<\/li>\n<li><strong>PC\/Console games: <\/strong>SEK 1.55 billion ($159.5 million, down 46%)<\/li>\n<li><strong>Mobile: <\/strong>SEK 682 million ($72.5 million, down 28%)<\/li>\n<li><strong>Entertainment &amp; services: <\/strong>SEK 1.69 billion ($170 million, up 23%)<\/li>\n<\/ul>\n<p><em>Full year (12 months ended March 31, 2025)<\/em><\/p>\n<ul>\n<li><strong>Net sales: <\/strong>SEK 15.90 billion ($1.6 billion, down 25%)<\/li>\n<li><strong>PC\/Console games: <\/strong>SEK 6.6 billion ($702 million, down 29%)<\/li>\n<li><strong>Mobile: <\/strong>SEK 2.3 billion ($244.6 million, down 57%)<\/li>\n<li><strong>Entertainment &amp; services: <\/strong>SEK 6.9 billion ($734 million, up 6%)<\/li>\n<\/ul>\n<h3><strong>The highlights<\/strong><\/h3>\n<p>Embracer&#8217;s PC and console segment saw the largest decline in Q4, mainly due to lower net sales from new releases, which totaled SEK 379 million ($40.3 million), a 72% year-over-year decrease.<\/p>\n<p>This was largely because Kingdom Come: Deliverance 2 generated significant net sales in the prior quarter.<\/p>\n<p>New IP Reanimal, developed by Tarsier Studios and published by THQ Nordic, sold over one million copies since its February 2026 release.<\/p>\n<p>Screamer and Ride 6, both developed and published by Milestone, also contributed to segment net sales.<\/p>\n<p>Revenue from back catalogue titles rose 4% year-over-year to SEK 994 million ($105.7 million), driven by Kingdom Come: Deliverance 2 (which exceeded internal expectations), Dead Island 2, and Echoes of the End.<\/p>\n<p>The company reported a loss of over SEK 200 million ($21.2 million) from financial write-downs and cuts to co-publishing and work-for-hire projects. It also recorded a loss of SEK 40 million ($4.2 million) from the write-down of non-core IP.<\/p>\n<p>Full-year accounts show Embracer reduced its total game development projects from 94 to 79 and its headcount from 6,875 to 6,090. Of these, 4,485 are game developers.<\/p>\n<p>Embracer&#8217;s mobile segment reported a 28% year-over-year decrease in net sales to SEK 682 million ($72.5 million), mainly due to <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.gamesindustry.biz\/embracer-divests-easybrain-to-miniclip-in-12bn-deal\">the divestment of Easybrain<\/a> in January 2025.<\/p>\n<p>Its Entertainment &amp; Services division, including Middle-earth Enterprises, achieved growth driven by strong Plaion Partners releases and ongoing activity related to the Lord of the Rings IP.<\/p>\n<p>This follows recent reports indicating that <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.gamesindustry.biz\/amazon-and-embracer-partner-for-new-lord-of-the-rings-mmo\">Amazon cancelled its Lord of the Rings MMO<\/a>, which was in development with Middle-earth Enterprises and initially announced in 2023.<\/p>\n<\/p><\/div>\n<p><em> \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n<p><em> \u2018 Some details of this article were extracted from the following source www.gamesindustry.biz \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Embracer Group has released its fourth quarter and full-year financial results, along with plans to spin off Fellowship Entertainment as a new publicly listed company. Fellowship Entertainment will concentrate on its premium IP and development portfolio, including Kingdom Come: Deliverance, Tomb Raider, Metro, Dead Island, Darksiders, and Remnant. The company aims to release at least [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2424653,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[],"class_list":["post-2424652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/05\/Embracer-Group-announces-plans-to-spin-off-Fellowship-Entertainment.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2424652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2424652"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2424652\/revisions"}],"predecessor-version":[{"id":2424654,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2424652\/revisions\/2424654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2424653"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2424652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2424652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2424652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}