Embracer explores external partnerships for IPs

Embracer Group said on May 20 it plans to split itself into two publicly listed companies and put a new unit, Fellowship Entertainment, in charge of a broader push to license and develop some of its best-known game properties with outside partners. The move gives firmer footing to social-media reports from May 19 that said the company was seeking external deals around dormant or underused series including Deus Ex, Saints Row, Legacy of Kain and TimeSplitters. Embracer disclosed the strategy in a press release, an investor FAQ and an open letter from Chair Lars Wingefors published alongside its full-year results. The company said Fellowship is expected to list on Nasdaq Stockholm during calendar year 2027. ### Where did the talk about outside partners come from? A May 19 post from the X account Deus Ex Hub said Embracer was exploring external partnerships for franchises including Deus Ex, Saints Row, Legacy of Kain and TimeSplitters after recent layoffs. Embracer itself confirmed the core point a day later, saying Fellowship would “more actively” explore external partnerships around named intellectual properties, according to coverage by IGN and Video Games Chronicle based on the company’s investor materials. (embracer.com) May 20 filings on Embracer’s website show the company is not presenting the plan as a one-off discussion around a single franchise. Instead, it is tying the effort to the structure of Fellowship Entertainment, which Embracer described as an IP-led company built around game development, publishing and licensing. (ign.com) ### Which franchises are actually in scope? Lars Wingefors named Saints Row, Legacy of Kain, Deus Ex and TimeSplitters among the properties Fellowship will look to support through external partnerships, according to IGN and other game-industry outlets citing his shareholder letter. Embracer’s own materials separately say Fellowship will steward The Lord of the Rings, Tomb Raider and other major brands, while Eidos-Montréal and Crystal Dynamics will move into the new company. (embracer.com) Embracer has long held rights to several of the named series. The group said in May 2022 that its acquisition of Crystal Dynamics, Eidos-Montréal and Square Enix Montréal included IP such as Tomb Raider, Deus Ex, Thief and Legacy of Kain. Embracer’s corporate site currently lists Deus Ex and Saints Row among its portfolio brands and says Crystal Dynamics-Eidos houses IP including Deus Ex and Legacy of Kain. (ign.com) ### Why is Embracer doing this now? Embracer said the split is meant to sharpen management focus and give Fellowship a clearer mandate to develop, publish and license its key properties. In his May 20 letter, Wingefors said profitable growth at Fellowship would come partly from “increased focus on external licensing revenues” through “a new focused business unit.” He also said Fellowship is targeting a cadence of “at least 2 per year” in AAA releases starting in fiscal year 2027/28. (embracer.com) Phil Rogers, Embracer’s chief executive, said the separation is intended to create “clearer accountability” between the two businesses. Company materials say Embracer, the remaining entity, will focus on tighter cost control, disciplined capital allocation and selective acquisitions in areas such as mobile, distribution, retro, films, remakes and remasters. (embracer.com) ### How much of this is shaped by the company’s recent cuts? Crystal Dynamics, one of the studios moving into Fellowship, laid off 20 employees in March 2026, Game Developer reported. The outlet said the Tomb Raider developer had also cut staff in November 2025 and that Embracer’s broader restructuring after its 2022 buying spree had led to layoffs, closures, divestments and project cancellations across the group. (embracer.com) Video Games Chronicle reported on May 20 that Embracer had confirmed 900 employees were let go during its second quarter. That backdrop helps explain why social posts linked the partnership discussion to layoffs, though Embracer’s public documents frame the new licensing push as part of a longer restructuring and spin-off process rather than as a direct response to a single staffing decision. (gamedeveloper.com) ### What happens next, and who will run it? Embracer said Fellowship Entertainment is planned to become a separately listed company in 2027, subject to shareholder approval and other customary conditions. Starting with Embracer’s Q1 FY 2026/27 reporting, the company said it will break out results into two segments — Fellowship Entertainment and Embracer — ahead of the separation. (videogameschronicle.com) Phil Rogers, current chief executive of Embracer Group, is set to become chief executive of Fellowship Entertainment at the time of the spin-off, alongside COO Lee Guinchard and CFO Müge Bouillon, the company said. Embracer has started a search for a new CEO and CFO for the remaining business before the 2027 listing. (embracer.com 1) (embracer.com 2)