<\/p>\n
\n\tThe Lord of the Rings<\/a><\/em> and Tomb Raider<\/a><\/em> brands will be part of a new Stockholm-listed, \u201cIP-led\u201d entertainment business.<\/p>\n \n\tFellowship Entertainment is being formed through a company split at Embracer Group<\/a>, which owns the underlying IP rights to The Lord of the Rings<\/em>, The Hobbit<\/a><\/em> and Tomb Raider<\/em> among other brands. Embracer will divide into two publicly-listed businesses trading out of Sweden: Fellowship and a new-look Embracer.<\/p>\n \n\tThe Embracer Group chair and key shareholder, Lars Wingefors, described the Fellowship assets as \u201camong the most undervalued in the industry\u201d in a letter to shareholders explaining the split. The company has restructured several times in recent years, and made staff cuts as it seeks to find a way forwards.<\/p>\n \n\tFellowship will oversee the Lord of the Rings<\/em> IP and numerous games franchises. It will begin trading in Q1 of the full year 2026-2027, and will focus on game development, publishing and licensing. The latter element will encompass IP management across games, film, consumer products and other areas.<\/p>\n \n\tIn total, the company will include 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montr\u00e9al, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games and Warhorse Studios. It will also launch a publishing arm, consolidating the assets from Plaion and other parts of the current Embracer Group. Current net sales for the new group are SEK4.39B ($467M), and headcount is currently 2,169.<\/p>\n \n\tThe new-look Embracer will focus on supporting more entrepreneurial companies, including companies such as Vertigo Games, IP including Destroy All Humans!<\/em> and Titan Quest<\/em>, and licenses for brands including Hot Wheels Unleashed<\/em> and SpongeBob SquarePants<\/em>. The division will have net sales SEK11.54B ($1.23B) and headcount of 3,518.<\/p>\n \n\tEmbracer Chair Lars Wingefors said: \u201cThis separation is about sharper management focus and clearer accountability, giving each business the structure and leadership to realize more of its full potential. I am truly excited about Fellowship Entertainment\u2019s prospects to organically grow substantially over the coming years.\u201d<\/p>\n \n\tEmbracer CEO Phil Rogers and COO Lee Guinchard will move to become the CEO and COO of Fellowship, along with CFO M\u00fcge Bouillon, who also becomes deputy of the current Embracer from today. A recruitment process for a new CEO and CFO for Embracer has begun.\u00a0<\/p>\n \n\t\u201cOur direction is clear: to build a more disciplined group with two distinct businesses, each with a mandate and a structure that supports transparency and execution,\u201d said Rogers. \u201cI am confident that this is the right path forward to deliver long-term value for our fans, our businesses and IPs, our people, and our shareholders.\u201d<\/p>\n \n\tThe news came as Embracer unveiled Q4 results that saw net sales fall 24% year-over-year to SEK3.91B, even though the entertainment services unit that currently houses Lord of the Rings<\/em> and other major brands grew 23% to SEK1.7B. Adjusted EBIT fell a huge 64% to SEK360M.<\/p>\n \n\tEmbracer has gone through a series of operational changes and cost-cutting measures over recent years, and Wingefors admitted today in a letter to shareholders that \u201cit has been difficult to easily communicate the Embracer story\u201d due to various different elements of the business. It has already spun off two businesses, Asmodee and Coffee, and formed Middle-earth Enterprises & Friends<\/a> to house the likes of Lord of the Rings<\/em>, which was acquired<\/a> for almost $400M in 2022.<\/p>\n \n\t\u201cThe main rationale to spin-off Fellowship is to increase management focus to capture the full joint potential of the IPs, their respective communities and some of the best game developers in the world,\u201d said Wingefors. \u201cJust like Asmodee and Coffee Stain, we believe Fellowship Entertainment will thrive the most by becoming its own standalone business.<\/p>\n \n\t\u201cI\u00a0think the assets held by Fellowship Entertainment are among the most undervalued in the industry and I feel it\u2019s my duty as the largest shareholder to change this and create a structure to realize their full potential. I\u2019m convinced that Fellowship Entertainment could reach industry leading profitability and show healthy long-term organic growth above the industry average.\u201d<\/p>\n \n\tWingefors also claimed Embracer had tried to retain staff during its struggles. \u201cEven if, for some, we have become closely associated with industry layoffs, the reality is that we have worked hard to retain as many people as possible through a very difficult period, while balancing the needs to drive a profitable business operation,\u201d he added.<\/p>\n<\/div>\n \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n \u2018 Some details of this article were extracted from the following source deadline.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The Lord of the Rings and Tomb Raider brands will be part of a new Stockholm-listed, \u201cIP-led\u201d entertainment business. Fellowship Entertainment is being formed through a company split at Embracer Group, which owns the underlying IP rights to The Lord of the Rings, The Hobbit and Tomb Raider among other brands. Embracer will divide into […]<\/p>\n","protected":false},"author":2,"featured_media":2424849,"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":[475321,348389,475322,390937,361487],"class_list":["post-2424848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-embracer-group","tag-lord-of-the-rings","tag-middle-earth-enterprises-friends","tag-the-hobbit","tag-tomb-raider"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/05\/Lord-Of-The-Rings-Tomb-Raider-Spun-Out-Of.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2424848","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=2424848"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2424848\/revisions"}],"predecessor-version":[{"id":2424850,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2424848\/revisions\/2424850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2424849"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2424848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2424848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2424848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}