Embracer Group has been on a losing streak of late, having recently missed out on a $2 billion investment, laid off thousands of employees and sold one of its key properties, Gearbox, at fire-sale prices. Now, the company has announced plans to split into three separate, publicly listed entities, Bloomberg reported.
The first is Middle-earth Enterprises & Friends, specializing in AAA games and and overseeing the Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider and The Lord of the Rings franchises. Studios under its purview include Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios and 4A Games. This company will remain within the current listing as Embracer Group for now.
Basically, they damaged their reputation so badly that they now need to hide who they are going forward. Like how mobile games make you buy premium currency gems to hide how much you are actually spending on the game.