Here's How Much LOTR Rights Sold For

Swedish gaming conglomerate Embracer Group has unveiled the price it paid to acquire the rights to Lord of the Rings and The Hobbit last year, shedding light on the financial aspect of the deal. Variety, confirming the details, is reporting that the Karlstad-based company disclosed a payment of SEK 4.2 billion (approximately $395 million) to secure Middle-Earth Enterprises from the Saul Zaentz Company in August.

While the initial deal announcement kept the sale price under wraps, industry estimates projected the value of the Lord of the Rings rights--encompassing films, video games, board games, merchandising, theme parks, and stage productions--to be as high as $2 billion. However, the actual price fell significantly short of those expectations.

For comparison, Amazon reportedly paid $250 million for the rights to produce the TV series The Rings of Power, acquired directly from the J.R.R. Tolkien estate. Amazon Games also struck a separate deal with Embracer to develop and publish a massive multiplayer online game based on Lord of the Rings.

Embracer's annual report, released alongside an aggressive cost-cutting program involving layoffs and studio closures, disclosed the sales figure for Middle-Earth Enterprises. The report attributed the need for these measures to recent acquisitions, economic conditions, and the collapse of a significant deal.

The acquisition of Middle-Earth Enterprises had a substantial impact on Embracer's cash flow. Nonetheless, the annual report offers hope for Lord of the Rings fans, promising the delivery of "world-class products" based on the Tolkien universe in the next two decades, along with adaptations in various media. Embracer's multi-year deal with New Line Cinema and Warner Bros. Pictures covers the production of multiple feature films based on Tolkien's works.

Check out our rundowns of all LOTR games on their way, and the latest on the new LOTR movie reboot--including how Warner Bros. is apparently trying to woo back director Peter Jackson.