The Embracer Brand Is Disappearing, CEO Refutes Claims It’s Because of Negative Reactions and Disputes



Swedish video game titan Embracer is changing its name and splitting into three separate companies, according to a recent announcement. Present Embracer CEO Lars Wingefors will set up a new holding company to be the majority shareholder of all three companies; the name of this new holding entity has not yet been revealed. Wingefors has refuted suggestions that the Embracer name was dropped to distance the firm and himself from the scandal following its decision to let go of 1,400 employees, cancel over two dozen games, and shut down studios.

The restructuring is part of a strategic move designed to allow each new firm to develop its own unique brand, reflecting its business focus and optimising its market potential, Wingefors said. The three companies are named: the Asmodee Group, Coffee Stain and Friends, and Middle-earth Enterprises and Friends; the latter two are temporary names pending final decisions. In addition, Embracer has secured about €900 million in financing from a group of banks, which roughly equals the amount of debt that will be transferred from Embracer to Asmodee.

Recently, Embracer underwent major cuts, including the cancellation of 29 unannounced games and nearly 1,400 layoffs over the past six months, due to a major deal failure at the last moment. Wingefors admitted that the banks prefer Asmodee because its business, tabletop games, is believed to be more secure than video games, and this financing will pay down most of the debt from the remaining entities of the Embracer Group, putting them on stronger financial footing.


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