Fellowship Entertainment to spin off key Embracer franchises

On May 20, 2026, Embracer Group revealed plans to separate its most valuable intellectual properties into a newly formed public entity named Fellowship Entertainment, targeting a debut on Nasdaq Stockholm during 2027. This move marks the second significant restructuring by the Swedish gaming conglomerate within three years.

Fellowship Entertainment will inherit flagship franchises including Lord of the Rings, The Hobbit, Tomb Raider, Kingdom Come: Deliverance, Metro, Dead Island, Darksiders, and Remnant, along with the studios responsible for these series. According to Embracer’s fiscal year 2025/26 figures, Fellowship’s portfolio would have generated net sales of SEK 4.39 billion (approximately $400 million) and employed 2,169 staff members.

The remaining Embracer company will retain a collection of smaller to mid-tier franchises such as Arizona Sunshine, Biomutant, Gothic, Killing Floor, Titan Quest, and Wreckfest. This entity emphasizes cost control and is described as focusing on "experienced entrepreneurs." Details regarding the division of debt between Fellowship and the residual Embracer have yet to be disclosed, with a prospectus expected before the 2027 public offering.

Phil Rogers, with prior leadership roles at Eidos and Square Enix, is appointed to lead Fellowship Entertainment alongside its existing management team.

Current projects and upcoming releases

The announcement coincides with active development news from Warhorse Studios, the Czech developer behind Kingdom Come: Deliverance. The studio confirmed work on a new Kingdom Come installment and a large-scale open-world RPG set in Middle-earth, though no release dates have been provided.

Beyond gaming, 2027 is anticipated to be significant for the franchises’ broader media presence. A Tomb Raider adaptation produced by Prime Video is scheduled for early 2027, while Warner Bros. plans to release Lord of the Rings: The Hunt for Gollum in December 2027, as reported by Variety. Fellowship Entertainment will hold the licensing rights for both projects.

Embracer’s restructuring history and rationale

This spin-off follows Embracer’s earlier public restructurings, including the February 2025 spinoff of Asmodee and Coffee Stain & Friends within the same year. Between 2023 and 2025, Embracer also recorded asset write-downs exceeding one billion dollars and cancelled numerous games. Among these was a 1.2 billion SEK (~$127 million) impairment related to a large, unannounced title, likely the long-anticipated action RPG from Eidos-Montréal.

The company states the purpose of the split is to allow each business to focus more precisely and "capture the full potential" of its assets. Investors will be watching to see if Fellowship Entertainment can simultaneously manage a Lord of the Rings open-world game, a Tomb Raider series, and the Gollum film as an independent entity.

Warhorse Studios teases new titles

Warhorse Studios shared a brief announcement highlighting two projects: an open-world Middle-earth RPG and a new Kingdom Come adventure, promising more information in the future.