In their latest earnings report, Embracer Group has announced that it will be splitting off into two companies: Embracer Group and Fellowship Entertainment. The big difference between the two companies is that Fellowship Entertainment will be the new home for Embracer’s biggest IPs, such as The Lord of the Rings and Tomb Raider. Other IPs part of Fellowship Entertainment include: Darksiders, Dead Island, Kingdom Come Deliverance, Metro, Remnant, and more.

Fellowship Entertainment will be built around the development, publishing, and licensing of games, with a single, centralized business plan. On the other hand, Embracer will operate as a highly decentralized organization and will have distinct strategies across its business segments which include pc/console games, mobile games, entertainment & services, and other. Fellowship Entertainment will be established in 2027.

“This 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’s prospects to organically grow substantially over the coming years. I am equally optimistic about the potential of the deep portfolio and selective M&A opportunities for a more focused Embracer. As Chair and major shareholder, I am strongly committed to support the preparations to drive value in two listed companies over the long-term”, says Lars Wingefors, Chair of the Board of Embracer Group.

“Our 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. I 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”, says Phil Rogers, CEO of Embracer Group.

You might have heard the rumours, it’s time to reveal what we are working on.

🗺️ An open world Middle-earth RPG.
⚔️ A new Kingdom Come adventure.

We’re excited to tell you more when the time is right.#WarhorseStudios #Annoucement #lotr #KingdomComeDeliverance pic.twitter.com/Pcgf9SqW52

— Warhorse Studios (@WarhorseStudios) May 20, 2026

In addition to expanding their largest transmedia IPs, Wingefors talks about investing in more of its other IPs and form new partnerships for some of its other big IPS such as Kingdom Come: Deliverance, Dead Island, Darksiders, Remnant and the licensed Metro series. Developer Warhorse Studios revealed today that they are working on a new Kingdom Come Deliverance adventure as well as a an open-world Middle-earth rpg.

There will also be a push to explore external partnerships for some of the other well-known IPs such as Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief, TimeSplitters, and more.