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Image via New Line Cinema

Embracer Group to acquire entire worldwide IP rights to Lord of the Rings, The Hobbit in $788 million mega move

It’s the beginning of a new age.

Swedish video game and media company Embracer Group is on the verge of acquiring Middle-earth Enterprises, which was originally a division of The Saul Zaentz Company and owns the worldwide rights to mega J.R.R. Tolkien franchises The Lord of the Rings and The Hobbit in regards to motion pictures, video games, board games, merchandising, theme parks, and stage productions.

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The deal also includes the rights for other Middle-earth literary works, as long as they’re authorized by Tolkien Estate and HarperCollins and have yet to be explored.

The blockbuster acquisition came alongside several other major scoops for Embracer, including Tripwire Interactive, Tuxedo Labs, and a mysterious, as-yet “undisclosed” company.

The entire acquisition deal will cost Embracer up to $788 million USD.

LOTR
Image via New Line Productions

Embracer said the deal would give them ”significant growth opportunities within PC, consoles, mobile, and tabletop games“—a mission statement that suggests gamers across the board will soon see plenty more Middle-earth themed releases.

According to the announcement, Embracer will leave Middle-earth Enterprises leadership intact while working with the operative group of Embracer Freemode and Embracer’s wider leadership to foster opportunities, growth and synergies within the Group to continue to build and expand the great franchise.

“I am truly excited to have The Lord of the Rings and The Hobbit, one of the world’s most epic fantasy franchises join the Embracer family, opening up more transmedia opportunities including synergies across our global group,” Embracer founder Lars Wingefors said in a press release posted on Embracer.com on Aug. 17.

“I am thrilled to see what lies in the future for this IP with Freemode and Asmodee as a start within the group. Going forward, we also look forward to collaborating with both existing and new external licensees of our increasingly stronger IP portfolio.”

LOTR-ft-img
Image via New Line Productions

This is not a deal that came out of nowhere, as Embracer (via Asmodee) already worked with licenses for Lord of the Rings trilogy and The Hobbit in both board games and card games, publishing over a dozen games within the franchise.

However, it does give the constantly expanding company greater access to the IP and potentially exploring new avenues for creation.

This move comes alongside Freemode being established as Embracer’s 11th operating group, with a specific focus on retro, classic, and heritage gaming and iconic gaming and media properties—kickstarted by the acquisition of Tatsujin, Bitwave, Gioteck, and an additional agreement to acquire Limited Run Games.

The company also purchased the rights to Tomb Raider alongside Crystal Dynamics, Eidos-Montréal, Square Enix Montréal from Square Enix back in May.


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Isaac McIntyre
Isaac McIntyre is the Aussie Editor at Dot Esports. He previously worked in sports journalism at Fairfax Media in Mudgee and Newcastle for six years before falling in love with esports—an ever-evolving world he's been covering since 2018. Since joining Dot, he's twice been nominated for Best Gaming Journalist at the Australian IT Journalism Awards and continues to sink unholy hours into losing games as a barely-Platinum AD carry. When the League servers go down he'll sneak in a few quick hands of the One Piece card game. Got a tip for us? Email: isaac@dotesports.com.
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Cale Michael
Lead Staff Writer for Dota 2, the FGC, Pokémon, Yu-Gi-Oh!, and more who has been writing for Dot Esports since 2018. Graduated with a degree in Journalism from Oklahoma Christian University and also previously covered the NBA. You can usually find him writing, reading, or watching an FGC tournament.