In a uncommon transfer absurd sufficient to make the already arcane licensing possession of The Lord of the Rings someway much more arcane, final yr Swedish conglomerate Embracer Group, on the apex of a spree of acquisitions that hoovered up every part from recreation corporations to comics writer Darkish Horse, acquired one of many key slices of Tolkien’s artistic rights. Now, the group’s future is up within the air.
The Hollywood Reporter has phrase that Embracer has introduced the promotion of a brand new interim COO, Matthew Karch, as a part of a significant restructuring that can see prices lower, layoffs, and even the potential closure of a number of of the gaming studios the group has acquired in its fast growth over the previous few years.
“This morning we introduced a restructuring program throughout the Embracer Group that can make us a leaner, stronger and a extra centered, self-sufficient firm,” Embracer CEO Lars Wingefors stated in a letter in regards to the restructuring. “Throughout the previous years, Embracer invested considerably, each in acquisitions and into a technique of accelerated natural progress. We’ve got acquired a number of the world’s main leisure IP, and we now have invested into one of many largest pipelines of video games throughout the business. This system offered immediately will remodel us from our present heavy funding mode to a extremely cash-flow generative enterprise this yr.”
Whereas a whole lot of the introduced plans revolve round Embracer’s gaming holdings (alongside publishers and again catalogues reminiscent of THQ Nordic and studios like Borderlands developer Gearbox, the group acquired the rights to legendary sequence like Tomb Raider and Deus Ex in its spate of fast progress) it’s not but identified how these deliberate initiatives will have an effect on folks at Embracer’s different acquisitions. Other than Center-earth Enterprises, the huge entity that offers Embracer Lord of the Rings rights for video and board video games, stage diversifications and bodily experiences, merchandising, and particular sorts of movie and TV diversifications utilizing the settings, characters, and occasions of Tolkien’s work—Embracer additionally acquired the aforementioned Darkish Horse, in addition to boardgame developer Asmodee in recent times, amongst others.
Contemplating that Embracer is seemingly nonetheless full pace forward on its method to licensing Lord of the Rings out—except for offers that continued after its acquisition with prior companions like Warner Bros. and Video games Workshop, the corporate is licensing extra LOTR video video games, such because the not too long ago revealed survival/crafting recreation Return to Moria—you’d presume the group just isn’t going to chop away at its proverbial golden goose this quickly. However regardless of what’s in the end secure from Embracer’s restructuring, it’s frankly insane to see the response to their very own gleeful spree of company hoarding is to instantly begin winnowing away on the individuals who made these companies price buying on the first place.
Not that The Lord of the Rings or The Hobbit have something to say about the price of blind avarice or what have you ever. Perhaps somebody in Embracer’s board rooms ought to strive studying them in some unspecified time in the future?
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