Netflix acquires Finnish mobile game developer Next Games for €65m
Netflix announced it has entered into a combination agreement to acquire Finnish mobile game developer, Next Games. Under the terms of the agreement, Netflix will commence a tender offer process to acquire all of the issued and outstanding shares of Next Games.
Pursuant to the offer, Next Games shareholders would receive €2.10 in cash per share of Next Games, for a total value of approximately €65 million. The Board of Directors of Next Games has unanimously decided to recommend that the shareholders accept the tender offer.
Michael Verdu, Vice President of Games, Netflix: “Next Games has a seasoned management team, strong track record with mobile games based on entertainment franchises, and solid operational capabilities. 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. 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.”
Founded in 2013 and led by Teemu Huuhtanen, Next Games creates and operates engaging mobile games with an authentic and social fan experience at the heart. The company's strategy is to develop games on popular entertainment IP with fans across the globe, including Stranger Things: Puzzle Tales, a story-driven puzzle role playing game (RPG) inspired by one of Netflix's most watched series. The company had approximately 120 employees at the end of 2021 and reported sales of approximately €27.2 million in 2020, with 95% of revenues generated from in-game purchases in 2020.
Teemu Huuhtanen, Chief Executive Officer, Next Games: “We have had an unwavering focus to execute on our vision: to become the partner of choice for global entertainment businesses and craft authentic and long-lasting interactive entertainment based on the world’s most beloved franchises. 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.”
The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions.