We Learned How Much Embracer Paid for Lord of the Rings

Almost a year after the official announcement of the deal we learned the amount for which Swedish holding company Embracer Group acquired the rights to create adaptations of works in the world created by J.R.R. Tolkien (via Variety).

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The Karlstad-based company revealed in its annual financial report, that the acquisition of Middle-earth Enterprises in August 2022 from the Saul Zaentz Company cost it SEK 4.2 billion, or approximately $395 million - at current exchange rates.

This amount seems surprisingly low, considering that with the buyout of Middle-earth Enterprises Embracer Group gained the rights to develop not only video games set in Middle-earth, but also movies, board games, gadgets, and even signature theme parks.

By comparison Amazon had to pay as much as $250 million to the Tolkien Estate for the rights enabling it to film a TV show (this type of license was one of the few not held by Saul Zaentz).

However, it is worth remembering that Embracer does not own the rights to all games from the Middle-earth universe. The creators of such productions as The Lord of the Rings: Gollum, The Lord of the Rings: Return to Moria or The Lord of the Rings: Heroes of Middle-earth have separate licenses, acquired under previous agreements - even before the acquisition of Middle-earth Enterprises.

Interestingly, the Swedish group recently announced, that the Lord of the Rings brand is to be the "core" of its future projects - at least in the video game segment.

• Embracer Group - official website

• mergers and acquisitions
• The Lord of the Rings (franchise)
• Embracer Group