Shares in Embracer Group, a struggling publisher, skyrocketed by 18% today after it announced plans to split into three separate publicly traded companies.
The company will divide its assets into Asmodee, a tabletop publisher and distributor, Coffee Stain & Friends, a mid-sized specialist in PC, console, and mobile development and publishing, and Middle-Earth Enterprises & Friends, a triple-A outfit.
While shares closed at 25.32 kr ($2.3) on Friday, they rose to 29.95 kr ($2.7) with the news. However, the shares are still down by 75% from their peak in April 2021.
Financial Challenges
Embracer Group has faced significant challenges with $1.5 billion in debts and the failure to secure a $2 billion investment deal, potentially with Savvy Games Group, for its M&A strategy and production pipeline.
This failed deal led to a crisis within the company, resulting in over 1,000 job cuts and now the decision to split the entire company into three entities.
Asmodee is expected to list its shares within the next 12 months while Coffee Stain & Friends will follow suit in 2025. Shares of both companies will be distributed as dividends to Embracer Group shareholders.
