By Michael Susin


Games Workshop Group said it agreed to creative guidelines and reached a final agreement with Amazon Content Services for the film and television series of its popular Warhammer game.

The U.K. manufacturer behind the miniature tabletop wargame said it granted exclusive rights to Amazon.com's subsidiary over the Warhammer 40,000 universe. Amazon also has a license option over equivalent rights in the Warhammer fantasy universe upon release of any initial production. The deal includes merchandising rights.

The company said Tuesday that production for the movies and television series might take a number of years. Financial details of the agreement weren't disclosed.

Warhammer 40,000 incorporates miniature fantasy models that consumers can assemble and paint to use in boardgames, and is the core of Games Workshop's revenue.

The game is especially popular in the U.K. & Europe and North American markets, with regional trade sales--sales to independent retailers and distributors excluding its own retail stores--for fiscal 2024 representing 125.4 million pounds ($159.9 million) and 124.4 million pounds, respectively, from a total of 288.4 million pounds.

Jefferies analysts said the agreement represents a compelling opportunity for Games Workshop. "We see scope for an Amazon/Warhammer production to be a game changer in terms of global awareness of, and demand for, core Warhammer product," they said.

The deal also has it risks as Games Workshop could face reputational damage if Amazon makes a bad show, AJ Bell analyst Dan Coatsworth said.

"There have been plenty of examples of TV and film production based on content with devoted fan bases disappointing devotees in the past. Games Workshop's key strength is its army of enthusiastic hobbyists and it would be a negative if it did anything to alienate them," Coatsworth said.

The project involves actor Henry Cavill, known for his roles in 'Superman' and 'The Witcher'.

Games Workshop was recently promoted to London's FTSE 100 blue-chip index. The stock reached record highs after announcing it expects to beat sales expectations for the first half, with its licensing revenue set to more than double. The beat is being driven by the release of the videogame "Space Marines 2", which could add around 20 million pounds in the first half alone, Jefferies analysts said.

It will officially join the index on Dec. 23.

The stock is up more than 2,500% over the past decade, with its popularity sky-rocketing over the pandemic when consumers lifted entertainment companies sales as they sought new hobbies during lockdowns.

Shares in European trading were down 0.3% to 139.10 pounds.


Write to Michael Susin at michael.susin@wsj.com


(END) Dow Jones Newswires

12-10-24 0623ET