Embracer CEO Explains Company Split and Future Plans

Embracer Group's CEO, Lars Wingefors, has revealed the reasoning behind the company's decision to split into three separate entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. This move is intended to create a more optimal environment for each business to thrive, allowing for better financing and lower capital costs. The split is a result of the changing gaming market and the company's efforts to adapt to the new environment. Wingefors emphasized that the goal is to create a structure that enables each company to prosper and make the best products possible. The company's debt, which currently stands at $1.5 billion, will be partially alleviated by the sale of Saber Interactive and Gearbox, with the remaining debt to be shouldered by Asmodee. Wingefors believes that Asmodee, with its stable cash flows and high margins, is well-equipped to handle the debt. The CEO also announced that he will be setting up a new holding company, which will allow him to retain ownership and majority stake in all three companies. The Embracer name will be phased out, and each new entity will develop its own unique brand identity. Wingefors emphasized the importance of execution and delivering results, rather than just communicating plans, and expressed his enthusiasm for the opportunities that lie ahead for the three companies, particularly in the area of transmedia ventures.