Embracer just made a huge splash in the entertainment industry by shelling out nearly $396M for the rights to the beloved Lord of the Rings franchise! The deal with Saul Zaentz Company gives Embracer the rights to motion pictures, video games, board games, merchandising, theme parks, and stage productions related to The Lord of the Rings and The Hobbit franchises, as well as matching rights to other Middle-earth-related literary works authorized by the Tolkien Estate and HarperCollins. And get this – there are still more untapped opportunities to explore!
But the big purchase came at a cost – Embracer’s cash flow was impacted by a whopping SEK 2.9BN ($267M). The company also recently announced a restructure that will lead to layoffs and closures of some divisions, which CEO Lars Wingefors admits will be tough.
Despite the challenges, Embracer is still going strong with new sales of SEK 37.7BN ($3.5BN) and profits of SEK 6.4BN ($594M). And with brands like Dark Horse Comics under their belt, they’re definitely a force to be reckoned with in the entertainment world.
