Embracer Group announces plans to spin off Fellowship Entertainment as a new publicly listed company, alongside a 24% net sales decline and a $765.2 million non-cash impairment in Q4 results.
Embracer Group has unveiled its Q4 and full-year financial results, revealing intentions to spin off Fellowship Entertainment into a separate publicly traded entity. The new company will focus on premium IP and development projects, such as Kingdom Come: Deliverance, Tomb Raider, and Lord of the Rings, with plans to release two major games annually starting in FY 2027/28.
Meanwhile, the remaining Embracer entity will concentrate on enhancing operational efficiency, cost control, and capital allocation. Embracer's chairman, Lars Wingefors, elaborated on this strategic move in a shareholder letter. The company will introduce segment reporting in Q1 FY 2026/27 to facilitate the split and has appointed Müge Bouillon as deputy CEO to reinforce governance.
