Embracer Group announced has announced its intention to split into two separate companies in a press release. This is expected to take effect in 2027.

The Swedish company has announced the creation of Fellowship Entertainment, which will be a publicly traded entertainment company. It will focus on the development, publishing, and licensing of video games.

It will house well-known franchises such as The Lord of the Rings, Tomb Raider, Metro, Dead Island, Remnant, Kingdom Come: Deliverance, and Darksiders. The studios associated with these franchises (Crystal Dynamics, Warhorse Studios, Dambuster Studios, 4A Games, etc.) will also be brought together under this banner.

For its part, Embracer will pursue its own strategy and retain other franchises such as Destroy All Humans!, Killing Floor, Kingdom of Amalur, and Titan Quest, along with their associated studios. Phil Rogers, CEO of Embracer, and Lee Guinchard, the company’s COO, will retain their respective positions within Fellowship Entertainment.