Embracer Group Paid $395 Million for ‘Lord of the Rings’ Rights | Variety
Embracer Group Paid $395 Million for ‘Lord of the Rings’ Rights | Variety
Embracer Group, the Swedish gaming conglomerate that snapped up the rights to “Lord of the Rings” and “The Hobbit” in a surprise deal last summer, has finally revealed how m…
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The Karlstad-headquartered company has confirmed it spent SEK 4.2 billion — $395 million at today’s conversion rates — to acquire Middle-Earth Enterprises from the Saul Zaentz Company last August. But estimates at the time projected the rights – which include worldwide rights to films, video games, board games, merchandising, theme parks and stage productions — were worth up to $2 billion.
Interesting that it fell so short of the $2 billion valuation. Wonder why that is.
Why spend 2 billion on a property valued at 2 billion if the goal is to harvest some of that value as profit?
Why sell a property valued at 2 billion for only 395 million?
Because 395 million in the hand is worth 2 billion in the bush?
Apparently. Its just an interesting decision to settle for an 80% discount. Perhaps it has something to do with the current economic situation