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Embracer's shares surge by 18% following the announcement to dismantle the company

In a transformative move for Embracer Group, the beleaguered publisher has unveiled plans to split into three distinct publicly traded companies, igniting an 18% surge in its shares upon the announcement. Under this restructuring, Embracer will divide its assets into Asmodee, a prominent tabletop publisher and distributor, Coffee Stain & Friends, specializing in PC, console, and mobile development and publishing, and Middle-Earth Enterprises & Friends, focusing on triple-A games.

Despite the market excitement, with shares rising from Friday's close at 25.32 kr ($2.3) to 29.95 kr ($2.7), the stock remains approximately 75% below its all-time highs reached in April 2021. This strategic maneuver comes amidst a challenging period for Embracer, grappling with debts totaling $1.5 billion and the collapse of a crucial $2 billion investment deal, purportedly with Savvy Games Group, intended to fuel its M&A strategy and production pipeline.

The fallout from the failed investment deal triggered a company-wide crisis, leading to significant layoffs exceeding 1,000 and the divestment of key businesses such as Saber Interactive and Gearbox. Now, with the three-way split of the entire company, Embracer aims to chart a new path forward.

Asmodee is anticipated to initiate its listing within the next 12 months, while Coffee Stain & Friends will follow suit in 2025. Shareholders of Embracer Group will receive dividends in the form of shares in both newly formed entities, signaling a major reshaping of the company's future landscape.

Source: adapted from an article by Craig Chapple, Head of Content for

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