Embracer leaders to steer spinoff amid profit plunge
Embracer Group has appointed a board of directors for its planned video game spinoff, Coffee Stain Group, tapping several of its own leaders to steer the new entity as the parent company navigates a sharp downturn in profits.
Anton Westbergh, CEO of Coffee Stain, has left Embracer's executive management team as part of the separation, the company said Monday.
The new board will be chaired by current Embracer board member Jacob Jonmyren and will also include Embracer co-founder Lars Wingefors and Embracer's chair, Kicki Wallje-Lund.
Westbergh will serve as CEO and a board member of the new standalone company.
The move is a key step in Embracer's plan to split into three separate publicly listed companies, a strategy announced after the company's adjusted operating profit plunged 87% in its most recent quarter.
Embracer also recently cut its full-year profit forecast and announced that Wingefors would step down as CEO to become executive chairman.
"Coffee Stain Group has thrived as part of the Embracer Group, with successful titles such as Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim and Welcome to Bloxburg," Jonmyren said in a statement.
"We now take the next step and prepare to stand on our own."
According to the company, the listing of Coffee Stain Group on Nasdaq First North Premier Growth Market in Stockholm is planned by the end of 2025, after which the remaining Embracer business will be renamed Fellowship Entertainment.
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