Embracer Group will spin off the newly rebranded Coffee Stain Group by the end of 2025, establishing it as an independent entity focused on community-driven game development and publishing. The Coffee Stain Group includes studios like Coffee Stain, Ghost Ship Games, and Tuxedo Labs, and is associated with popular titles such as Goat Simulator, Deep Rock Galactic, Satisfactory, and Valheim. CEO Anton Westbergh expressed pride and anticipation for the transition, believing it will allow Coffee Stain to thrive independently. Embracer Group's CEO Lars Wingefors supported this move, emphasizing the talent and IPs within Coffee Stain Group. This announcement follows Embracer Group's decision to spin off its subsidiary Asmodee and rebrand Middle Earth and Friends to Fellowship Entertainment.