Helsinki-based mobile games maker Next Games is slated to be acquired by Netflix in a shareholder buyout valued at approximately €65 million, or €2.10 per share, a number that reflects a premium of approximately 125.6 percent. The tender period will run from 14 March to 8 April and the transaction is expected to be finalised in the second quarter of this year.
Founded in 2013, Next Games specialises in producing games wrapped around entertainment franchises, including popular films, TV series, or books. Created “for fans for fans”, the platform first struck gold with its The Walking Dead: Our World, and The Walking Dead: No Mans Land titles, and has seen meteoric success in its latest output, Stranger Things: Puzzle Tales.
With the pandemic coming to a close(?), and the unending series of lockdowns coming to an end, less and less of us are glued to the couch, a statistic that has Netflix looking to diversify its offering. The company hasn’t been shy about its gaming world ambitions, and the acquisition of Next Games falls neatly in line with this strategy.
“We are excited for Next Games to join Netflix as a core studio in a strategic region and key talent market, expanding our internal game studio capabilities,” commented Netflix’s VP of Games Michael Verdu. “While we’re just getting started in games, I am confident that together with Next Games we will be able to build a portfolio of world-class games that will delight our members around the world.”
Next Games reported sales of approximately €27.2 million in 2020, with 95 percent of revenues generated from in-game purchases in 2020.
On the acquisition, Next Games CEO and co-founder Teemu Huuhtanen comments, “Joining forces with the world’s largest streaming service, Netflix, presents an opportunity for a logical and exciting continuation of our strategy to craft interactive experiences for the world to enjoy. Our close collaboration with Netflix on Stranger Things: Puzzle Tales has already proven that together we create a strong partnership. This is a unique opportunity to level-up the studio on all fronts and continue on our mission together.”
A full rundown of the deal can be viewed at nextgames.com/investors/netflix-offer.