‘The Lord of the Rings’ changes ownership: a video game giant buys almost all the rights

Big and utterly unexpected news in the entertainment industry. Embracer Group, one of today’s largest video game companies, announced the purchase of Middle-earth Enterprises, which owns and manages much of the intellectual property (IP) for The Lord of the Rings and The Hobbit. Its previous owner was The Saul Zaentz Company. The figure has not been shared publicly, but we sense we face a stratospheric transaction.

The purchase of Embracer, which has been throwing the house out of the window to strengthen its franchise catalog in recent years, could mark the immediate future of The Lord of the Rings. Be careful because this acquisition affects the brand’s presence in video games, movies, and other entertainment products.

Because the universe created by JRR Tolkien is vast, the management of intellectual property for The Lord of the Rings is precisely divided into various categories. However, as mentioned above, Embracer gained control of almost all IPs, except Literary Works Publishing, which the Tolkien Estate still owns. This is what the company gets after opening the wallet:

• Franchise rights in video games and board games.
• The rights to The Lord of the Rings and The Hobbit movies. Also, television series that do not exceed four episodes.
• The rights to create merchandising, including services such as hotels and restaurants.
• Rights to develop amusement parks.
• Rights to create plays or live performances of The Lord of the Rings and The Hobbit.
• Rights to adapt any literary work approved by the Tolkien Estate. This includes The Silmarillion and Unfinished Tales from Númenor and Middle-earth.

The last one is the most important of all. Because? Because any production house interested in creating a movie/series based on Tolkien’s work will have to go through the Embracer Group desk to negotiate the license.

Perhaps at this moment, you are wondering, does this affect The Rings of Power, the Prime Video series of The Lord of the Rings? Well, there is a lot of confusion about it. Middle-earth Enterprises was involved in the licensing issue, but Embracer notes that its acquisition only covers series no longer than four episodes. Therefore, Amazon would not have to renegotiate the rights it acquired years ago. I hope they clarify this issue soon.

The future of The Lord of the Rings

What will happen from now on? Embracer has the freedom to explore endless stories through various products. His specialty, of course, is video games, but surely there will be film companies interested in negotiating new films. Embracer itself indicates that they are studying the option of developing films focused on characters like Gandalf, Aragorn, Gollum, Galadriel, or Eowyn, to name just a few. Yes, the possibilities are almost limitless.

Embracer did not shell out a multi-million dollar amount to have The Lord of the Rings stored in a trunk. So, you can expect the company to greenlight multiple adaptations in the coming years. The gold mine is not going to explode itself.

“I am truly excited to have The Lord of the Rings and The Hobbit, some of the most epic fantasy franchises in the world, join the Embracer family, opening up more transmedia opportunities, including synergies across our global group.”, stated Lars Wingefors, CEO and founder of Embracer Group.

It is worth mentioning that The Lord of the Rings IP will not be managed directly by Embracer Group but by its subsidiaries, Freemode and Asmodee. “In the future, we also look forward to collaborating with existing and new third-party licensees of our increasingly strong portfolio of intellectual properties,” he concludes.

Embracer not only announced the purchase of Middle-earth Enterprises. They also snapped up multiple video game companies like Tripwire Interactive, Limited Run Games, Tuxedo Labs, and Singtrix. Also, mention that they made another major acquisition but will make it official later. Last May, the group took over Square Enix’s western studios and now owns the franchises: Tomb Raider,  Deus Ex,  Thief, and Legacy of Kain.