Embracer bought Lord of the Rings rights for just $395 million

Sounds almost like a bargain
Embracer bought Lord of the Rings rights for just $395 million
Embracer bought Lord of the Rings rights for just $395 million /

Embracer Group, the gaming giant from Sweden, has purchased the rights for Lord of the Rings and The Hobbit for a mere $395 million, the company’s annual financial report states. That is far below estimations made back in February 2022, when it became public knowledge that the rights were to be sold, which put their value at around $2 billion.

The package of IP rights Embracer bought spans video games, board games, movies, theme parks, and more. The company recently stated it had to “exploit” Lord of the Rings a lot more to make that costly investment worthwhile – a movie deal with New Line Cinema and Warner Bros. as well as a deal with Amazon Games about the development of a Lord of the Rings MMO were likely only the start of that.

Embracer’s report promises “several world class products” across all forms of entertainment using Tolkien’s works as a basis over the next twenty years.

For now, though, the company is putting its hopes into the releases of Payday 3, Remnant 2, and Warhammer 40,000: Space Marine 2, which are the big upcoming titles nearing completion. New releases have been responsible for 22% of Embracer’s PC and console game sales over the past financial year, while the company’s vast back catalog contributed 53%.

Dead Island 2 has been highlighted in the report as highly successful, selling over two million units as of May 24, 2023, which means it “has surpassed the management’s initial expectations.”

Overall, the PC and console games segment amounted to 36% of Embracer’s sales, which now lists 102 internal video game studios with over 10,000 employees and 258 owned IPs. The report states that there are currently 221 PC and console game projects in the pipeline.


Published
Marco Wutz
MARCO WUTZ

Marco Wutz is a writer from Parkstetten, Germany. He has a degree in Ancient History and a particular love for real-time and turn-based strategy games like StarCraft, Age of Empires, Total War, Age of Wonders, Crusader Kings, and Civilization as well as a soft spot for Genshin Impact and Honkai: Star Rail. He began covering StarCraft 2 as a writer in 2011 for the largest German community around the game and hosted a live tournament on a stage at gamescom 2014 before he went on to work for Bonjwa, one of the country's biggest Twitch channels. He branched out to write in English in 2015 by joining tl.net, the global center of the StarCraft scene run by Team Liquid, which was nominated as the Best Coverage Website of the Year at the Esports Industry Awards in 2017. He worked as a translator on The Crusader Stands Watch, a biography in memory of Dennis "INTERNETHULK" Hawelka, and provided live coverage of many StarCraft 2 events on the social channels of tl.net as well as DreamHack, the world's largest gaming festival. From there, he transitioned into writing about the games industry in general after his graduation, joining GLHF, a content agency specializing in video games coverage for media partners across the globe, in 2021. He has also written for NGL.ONE, kicker, ComputerBild, USA Today's ForTheWin, The Sun, Men's Journal, and Parade. Email: marco.wutz@glhf.gg