Last week, the Embracer Group announced another acquisition spree. One of the most notable acquisitions – Middle-Earth Enterprises and the game adaption rights to the Lords of the Rings and The Hobbit Ips. As expected, Embracer and its investors talked about this deal (which, from the looks of it, is an absolute steal for the Swedish holding group), and based on the reactions during the company’s most recent earnings call, everyone is more than excited about this acquisition, which includes the rights to video games, board games, tabletop games, film rights, stage production rights, and more (the book publication rights remain with Tolkien Estate). “So again, the rationale for us here”, Embracer Freemode’s CEO, Lee Guinchard, told investors. “I mean, again, this is totally in line with the Embracer’s IP driven transmedia strategy. I mean, if it’s, again, straight bang in the middle of this, Middle-earth Enterprises will be part of Freemode and will continue to be operated by the team in California. So, that’s fun. From my perspective, coming obviously from gaming, I think this is huge, huge, huge, huge for us. As a company, of course, we have our existing licensees doing existing projects, but I think if you look the talents we have here at Embracer Group with the other operating groups and just the most diverse development talent, I think when we start looking in the medium and the long-term here, I think this is where this starts to get very interesting for us.” The CEO added that he hopes to build new stories and experiences that fans will love for years to come. “And again, I think this is, you’ve had the rights for [indiscernible] for 50 – have been 50 years. If you think what can we do with it in the next 50 years? Yes. Your mind starts to boggle and we all go crazy when we think about that. So, I think from my perspective, to build new experiences and stories that delight fans for the next 50 years. And hopefully, as much of that can be Embracer talent.” Andy Jones, Senior Vice President at Embracer-owned board games publisher Asmodee, also chimed in on the matter, stating that everyone who’s into fantasy knows about the franchise or will eventually touch upon it. And Middle-earth – let’s be honest, Middle-earth is the biggest, oldest, most enduring and influential fantasy world, by none. So, yes, of course, we should seize this opportunity. Because anybody who’s interested in fantasy will touch The Lord of the Rings and The Hobbit at some point on their journey. I believe that’s absolutely inevitable. So, talking about the acquisition rationale, the world of Middle-earth, the Lord of the Rings, The Hobbit, is vast both in its legacy and in the future potential for the Embracer Group. So, I do think the strategic rationale is very clear. It’s compelling and it’s very, very, very exciting. And our journey in Middle-earth is just beginning. So, yes, absolutely fabulous, and I’m just delighted to be here and part of this. It’s to see how delighted Embracer and its partners are about this acquisition and we can’t wait to see what the company has in store for us.
