Embracer Group shares fell more than 30% ahead of the spin-off of Coffee Stain Group on December 11.
The Swedish firm's share price closed at SEK 85.49 ($9.15) on Friday, December 5, but opened at SEK 57.95 ($6.20) on the morning of Monday, December 8. From that point on, shareholders holding Embracer Class B shares could not receive shares of Coffee Stain Group once the company went public. By the end of the game, Embracer's shares were valued at SEK 60 ($6.42); at the time of writing, the company's share price was SEK 60.33 ($6.45).
Coffee Stain will begin trading on the Nasdaq First North Premier Growth Market in Stockholm on December 11.
In May, Embracer Group announced it planned to spin off Coffee Stain as a separate company. by the end of the year.
“The spin-off represents an important milestone as we streamline and sharpen the focus of our business,” Embracer CEO Phil Rogers said in presenting the company's latest financial results.
“With a powerful combination of strong IPs, engaged communities and innovative talent, we are extremely confident in Coffee Stain's future as a standalone company.”
In its financial statements for the three months ended September 30, 2025.Coffee Stain Group reported net sales of SEK 224 million ($23.96 million), down 12% year-on-year. The company's EBIT decreased by 42% to SEK 44 million (USD 4.7 million).
In April 2024 Embracer Group has announced that it plans to split into three separate companies.; Asmodee Group was to focus on board games, while Coffee Stain and Friends' main business was indie and mid-range projects. Finally, Middle-earth Enterprises and Friends focused on AAA games.
Coffee Stain and Friends was later renamed Coffee Stain Group, and Middle-earth Enterprises became Fellowship Entertainment.
Asmodee was spun off in February 2025, causing Embracer shares to fall 41.5%.
Now that Coffee Stain Group is about to set itself apart, Embracer Group plans to rebrand as Fellowship Entertainment..
The restructuring and spin-off of Embracer's various divisions follows a tumultuous few years after the company failed to secure a $2 billion investment from Saudi Arabia's Savvy Games Group. Since then, the company has made thousands of layoffs, closed and sold a number of studios, and canceled game projects—most recently the company sold Arc Games and Cryptic Studios.
Embracer Group CEO and co-founder Lars Wingefors stepped down earlier this year. he will be replaced by deputy general manager Phil Rogers. Vingfors remains executive chairman of the company.
