Embracer Group’s buying spree continues. The Swedish holding company has announced five deals, including an acquisition of Middle-earth Enterprises, which owns IP rights to media products based on Tolkien’s works.

The Lord of the Rings: The Battle for Middle-earth II

  • The total purchase price of five deals amounts to SEK 6 billion ($575.2 million), of which SEK 4.2 billion ($402 million) will be paid in cash.
  • The likely total consideration for the acquired businesses amounts to SEK 8.2 billion (around $765 million).
  • These acquisitions should strengthen and diversify Embracer Group’s portfolio with new franchises.
  • The holding company also aims to increase its publishing capabilities in North America, especially in the AA, A, and indie segment of the PC and console market.
  • “It is encouraging that our group has become a natural and preferred buyer of creative, growing and profitable companies within Gaming and Entertainment,” Embracer CEO Lars Wingefors said.

Middle-earth Enterprises

  • It is a division of The Saul Zaentz Company, which owns worldwide rights to video game, film, merchandise, and other adaptations of The Lord of the Rings and The Hobbit.
  • Middle-earth Enterprises will be a part of the holding company’s newly founded operative group Embracer Freemode. This subsidiary will focus on providing a “global strategic, operational, and financial support ecosystem for its collective of small to midsize companies to achieve operational efficiency.”
  • The financial terms of the deal remain undisclosed.
  • Although Embracer won’t have rights to Tolkien’s books, it will be able to use characters and other elements of the Middle-earth world to produce new games and other transmedia products.

Limited Run Games

  • The video game distributor and publisher will become a part of Embracer Freemode.
  • Limited Run Games also owns Carbon Engine, a technology that helps port retro games to modern platforms.
  • The company also specializes in distributing physical copies of games, including different collector’s editions.
  • The financial terms of the deal remain undisclosed.


  • The company, which is known for making vocal processing effects for karaoke, video games, and other media, will be wholly owned by Embracer Freemode.
  • Singtrix has also patented the core technology behind the Guitar Hero series.
  • The holding company says this acquisition will provide it with new opportunities for music and audio gaming products.
  • The financial terms of the deal remain undisclosed.

Tuxedo Labs

  • Known for its sandbox voxel destruction game Teardown, the Swedish studio will be wholly owned by Saber Interactive.
  • According to Embracer, Tuxedo Labs’ technology has the potential to “become the standard-bearing platform for physics simulation in games.”
  • The deal includes an upfront part and a long-term earnout, but other financial terms of the deal remain undisclosed.

Tripwire Interactive

  • The Killing Floor developer will become a part of Saber Interactive.
  • Through the Tripwire Interactive acquisition, Embracer will get four successful IPs, including Rising Storm, Red Orchestra, and Maneater.
  • The US studio, which currently employs 113 people, is now also working on an unannounced AAA game.
  • The financial terms of the deal remain undisclosed.

Got a story you'd like to share? Reach us at [email protected]