Gaming company Embracer has been buying up intellectual property lately... and now it just added Lord of the Rings to its cart.
👉Background: Embracer is a seriously big gaming company based in Sweden. We're talking 230 games in development,13,000 staff and around 850 IPs.
👉 What happened: In the past decade, Embracer has turned into something of a shopaholic - it has been purchasing intellectual property. Think: Tomb Raider, Borderlands and Hellboy.
👉 What else: Now this crew has added Lord of the Rings (and The Hobbit) to cart! Embracer didn't specify the acquisition price for Lord of the Rings but estimated the total cost of eight acquisitions was $780 million.
💡Some franchises come and go like a flash in the pan… but others are super sticky. So large companies are collecting these sticky franchises as a way to guarantee some reliable income.
💡Exhibit A: Disney. They bought up the production company behind Star Wars in 2012… and it has sold nearly 120 million video games across the franchise. But, smooth sailing isn’t guaranteed when you make a video game adaptation of a big franchise.
💡The Ghostbusters game made only $3.4 million… which sounds okay until you remember the movie made $417 mil. So we’ll have to wait and see whether Embracer’s big purchase was worth it.
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