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.

The deal also includes “matching rights” in other Middle-earth-related literary works authorised by the Tolkien Estate and HarperCollins – primarily The Silmarillion and The Unfinished Tales of Numenor and Middle-earth – which were published after Tolkien’s death in 1973.

When the business was put up for sale by the Saul Zaentz Company, which acquired its rights from the heirs and estate of Tolkien and HarperCollins in 1976, it was expected that Amazon would buy it to build its own Middle-earth empire.

In 2017, Amazon paid $250m (£208m) for the rights to make a big budget prequel to Lord of the Rings, called Rings of Power, which is to have a global release on its Prime Video service on 2 September.

Read more: yahoo