Why Embracer Group Stock Jumped 10% on Monday Morning
Shares of Embracer Group (OTC: THQQ.F) rose as much as 9.9% on Monday morning. The Sweden-based conglomerate of video game studios took a sharp strategic turn today. In a complicated bundle of transactions and corporate actions, Embracer is splitting into three separate companies, all publicly traded on the Nasdaq Stockholm exchange.
First, the Asmodee Group broke away from Embracer along with a new 900 million euro (roughly $960 million) financing deal. This new company controls 23 game development studios and more than 300 game titles, including Ticket to Ride, Catan, and Exploding Kittens. Most of the games in this business involve converted board games, card games, and role-playing games.
Next, Middle-earth Enterprises Friends split apart from Coffee Stain Friends, creating two more publicly traded companies. Coffee Stain holds many smaller development teams. The studio controls free-to-play titles such as Sudoku.com, Neverwinter, and Star Trek Online, along with premium mobile and console games like Goat Simulator 3 and Deep Rock Galactic.
Source Fool.com
