Embracer Forms Fellowship Entertainment to Steward LOTR and Tomb Raider IPs

Embracer Group will spin off Fellowship Entertainment as a standalone, Stockholm-listed company to manage The Lord of the Rings, The Hobbit and Tomb Raider IPs, plus related studios and a publishing arm; it will begin trading in the 2026-27 fiscal year. The remaining Embracer will continue as a separate business, with leadership moves to Fellowship and a new CEO/CFO for Embracer being sought. The move aims to sharpen management focus and unlock IP value after years of restructuring, as quarterly sales fell 24% while the entertainment unit grew 23%.