Embracer Group's board of directors announced plans to split the company into two independent publicly listed entities, with Fellowship Entertainment—home to Dark Horse Media—launching as a separate company on Nasdaq Stockholm in 2027.

The restructuring reflects Embracer's strategy to create focused business units. Fellowship Entertainment will operate as an IP-driven entertainment company centered on game development, publishing, and licensing. The company will manage major franchises including The Lord of the Rings, The Hobbit, and Tomb Raider. Meanwhile, the remaining Embracer Group will handle PC and console games, mobile games, and entertainment services.

Current Embracer Group CEO Phil Rogers and COO Lee Guinchard will lead the transition, then move to helm Fellowship Entertainment alongside CFO Müge Bouillon. The board described this split as necessary to "further increase management focus to capture the full potential of the high-quality assets in the group and accelerate value creation."

The spinoff comes as part of Embracer's broader restructuring following financial challenges. After a planned $2 billion investment from Saudi Arabia's Savvy Games Group fell through in 2023, the company faced significant debt. This prompted a series of changes including mass layoffs, asset sales, and a three-company split announced in April 2024.

Dark Horse Media, acquired by Embracer between December 2021 and March 2022, represents a key asset in this reorganization. The company has maintained relevance in both comics publishing and media adaptation, making it a logical anchor for the new Fellowship Entertainment entity.

The board will begin reporting through both segments starting in Q1 of fiscal year 2026/2027, giving stakeholders a preview of how the two companies will operate independently before the official spinoff. For anime and entertainment fans, this restructuring could mean clearer strategic direction for Dark Horse's adaptation projects and publishing initiatives.

The full spinoff is expected to complete in 2027, pending regulatory approval and standard closing conditions.