Recent reports are claiming that a proposed deal between Saudi Arabia’s Video Games Group (VGG) and the Lord of the Rings video game company has unexpectedly fallen through. The terms of the deal reportedly included a $2 billion investment from VGG, which stirred excitement amongst the game development team. However, media outlets are now reporting that the Saudi group has unexpectedly walked away from the deal.
The proposed agreement between VGG and the Lord of the Rings game company was first announced in November 2020, and was expected to boost the development of the Lord of the Rings game franchise. As part of the agreement, VGG had agreed to invest $2 billion into the Lord of the Rings Game Company. This significant investment from the Saudi group was expected to extend the reach of the game in the Middle East and North African regions, and included plans for a virtual theme park aimed at fans of the series.
However, investors have since learned that the deal between VGG and the Lord of the Rings game company was abruptly called off over the weekend. According to reports, the Saudi group pulled out of the deal because the Lord of the Rings game company refused to negotiate with VGG over the specific terms of the agreement. VGG was apparently unhappy with the terms of the deal, and…after lengthy negotiations, finally decided to abandon the deal altogether.
Although the two sides negotiated for nearly seven months, it seems unlikely that the agreement would have been reached. The specific terms of the deal remain unknown, and representatives from both VGG and the Lord of the Rings game company have been silent on the issue.
The abrupt cancellation of the deal has caused considerable confusion amongst investors in both the Saudi group and the Lord of the Rings game company. This comes at a time when the gaming industry is facing significant changes, and where investments from outside companies can be instrumental in driving the development of gaming franchises. For now, it looks like the Lord of the Rings series might have to look elsewhere for a significant investment. It remains to be seen if either party will attempt to re-negotiate the deal, or if their negotiations have come to an end.
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