Swedish gaming giant buys Lord of the Rings and Hobbit rights

Embracer buys Middle-earth Enterprises which controls intellectual property rights to Tolkien's most famous works

The company that owns the rights to JRR Tolkien's works, including The Lord of the Rings and The Hobbit, has been bought by the Swedish gaming firm Embracer Group, which has hinted it could make spin-off films based on popular characters such as Gandalf, Aragorn and Gollum.

Embracer has acquired Middle-earth Enterprises, the holding company that controls the intellectual property rights to films, video games, board games, merchandise, theme parks and stage productions relating to Tolkien's two most famous literary franchises.