02:00 AM EDT, 05/20/2026 (MT Newswires) -- Embracer Group (EMBRAC-B.ST) plans to spin off its gaming development unit Fellowship Entertainment to simplify its management structure and to boost its focus on high-quality assets.

The proposed spin-off would create an intellectual property-led entertainment company focused on game development, publishing, and licensing. Following the separation, Embracer intends to concentrate on profitability and on mergers and acquisitions aimed at driving shareholder value, according to a Wednesday release.

Under the plan, the Embracer board would distribute shares in the company as a dividend to existing shareholders. Fellowship Entertainment is expected to list on the Nasdaq Stockholm exchange in 2027. The issuance of the dividend shares remains subject to shareholder approval.

Meanwhile, the company appointed Group Chief Financial Officer Müge Bouillon as deputy chief executive officer of the Swedish video games and media holding group, effective immediately. Current CEO Phil Rogers and Chief Operating Officer Lee Guinchard, respectively, will take on similar roles at Fellowship Entertainment, along with Bouillon as CFO. The group expects to appoint a CEO and CFO for Embracer before the spin-off is completed.