News of a tie-up with Amazon to produce TV and films associated with the Warhammer universe is potentially huge for Games Workshop.
A lot of the excitement around the stock in recent years has been built around the licensing opportunities associated with Games Workshop’s intellectual property, which has a large and very loyal fanbase.
AJ Bell’s Russ Mould said: “Developing in this area has several upsides for Games Workshop. It generates extra revenue and cash flow for a relatively limited extra cost and, while Amazon will be granted the relevant merchandising rights, it could deepen fans connections with Games Workshop’s table-top gaming products and bring them to a wider audience.
“There have been modest efforts in the past to bring Games Workshop’s creations to the screen. Amazon’s deep pockets and its huge reach, more than 50% of British households have an Amazon Prime account, puts this in a different stratosphere.
“The deal is not signed and sealed yet but, barring alast-minute hitch, this could be an extremely significant step in Games Workshop’s development.
“The big risk is that, by almost certainly surrendering any creative control, Games Workshop is at the mercy of Amazon making something which might alienate its existing followers. The mixed reaction of Tolkien fans to Amazon’s recent Lord of the Rings prequel is something to consider.”