Embracer announces plan to split into 2 companies, as Tomb Raider and LoTR spun off

May 20, 2026 - 14:52

Embracer Group has announced a major restructuring plan that will see the company split into two separate entities, with its most valuable intellectual properties, including Tomb Raider and The Lord of the Rings, being spun off into a new standalone company.

The new company, tentatively named Fellowship Entertainment, will take control of a portfolio of high-profile game franchises. This includes not only the Lara Croft and Middle-earth properties, but also major series like Dead Island, Kingdom Come Deliverance, and Metro. The move is designed to unlock value from these assets, which Embracer has been aggressively acquiring over the past few years.

The remaining part of Embracer will retain the bulk of its other studios and publishing labels, including THQ Nordic, PLAION, and Saber Interactive. This split comes after a period of rapid expansion followed by a significant downturn in the gaming market, which forced Embracer to cancel projects and close studios. By separating the high-value IP into a dedicated company, Embracer aims to attract new investment and streamline its operations. The exact timeline for the split has not been finalized, but the company expects the process to be completed within the next year.