Netflix to Acquire Finnish Mobile Game Developer Next Games

Acquisition is expected to be completed later this year.

March 2, 2022

Netflix/Next Games

Netflix has announced it has entered into a combination agreement to acquire Next Games. Under the terms of the agreement, Netflix will commence a tender offer to acquire all the issued and outstanding shares of Next Games. Pursuant to the offer, Next Games shareholders will receive €2.1 in cash per share of Next Games, for a total equity value of approximately €65 million. The board of directors of Next Games has unanimously decided to recommend that the shareholders accept the tender offer. 

"Next Games has a seasoned management team, strong track record with mobile games based on entertainment franchises, and solid operational capabilities," says Michael Verdu, vice president, games, Netflix. "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, chief executive officer, Next Games creates and operates mobile games with global appeal and an authentic and social fan experience at its core. The company's strategy is to develop games based on popular entertainment IP, such as "Stranger Things: Puzzle Tales," a story-driven puzzle role-playing game inspired by one of Netflix's most-watched series. The company had roughly 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.

"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," says Huuhtanen. "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. 