Embracer Group enters into agreement to acquire IP rights to LOTR & Hobbit literary works by Tolkien

Add in LRG and Tatsujin (Toaplan)... they got their hands in cookie jars around the world.

Amazon know nothing about game development, grabbed a handful of industry vets to run unproven studios and thought gold would happen.
Many couldn't even manage to bring a game to market.

Embracer is what happens when a bunch of rich game nerds decide to start a company. Seems like they have a good understanding of the teams they buy, their IP, and what changes need to happen for them to thrive.
They got 3D Realms back on their feet. They knew to get Randy Pitchford out of the spotlight when they acquired Gearbox, even though he started the company.
People get worried when people start buying up the industry, but Embracer is one of just a couple companies that don't currently worry me when doing so.

If nothing else, every developer and IP they buy is one that doesn't go to Tencent and EPIC, so that can only be a net positive.

I couldn't say there.
As far as I know, this is Embracer's first acquisition where they now have a large, majorly known IP that they could viably make use of in mediums outside of videogames.

They've been doing well, both financially and for their consumers, in the videogame space. Hopefully that can be said the same if they really are attempting to get into the film and TV market.