LOS GATOS, CA., March 2, 2022 /PRNewswire/ — Netflix, Inc. (NASDAQ: NFLX) today announced that it has entered into a combination agreement to acquire Next Games (NXTGMS). Under the terms of the agreement, Netflix will launch a tender offer to acquire all of the issued and outstanding shares of Next Games. Pursuant to the offer, Next Games shareholders will receive €2.1 in cash per Next Games share, for a total net worth of approximately €65 million. Next Games’ board of directors has decided unanimously to recommend that shareholders accept the tender offer.
“Next Games has a seasoned management team, solid experience in mobile games based on entertainment franchises and strong operational capabilities,” said Michael Verdu, VP of Games, Netflix. “We are thrilled to have Next Games join Netflix as a lead studio in a strategic region and key talent market, expanding our internal game studio capabilities. As we are just getting started in games, I am confident that ‘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 global appeal and an authentic, 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 role-playing game (RPG) inspired by one of Netflix’s most-watched series. The company had around 120 employees at the end of 2021 and had revenue of around €27.2 million in 2020, with 95% of revenue generated from in-game purchases.
“We have been relentlessly focused on delivering on our vision to become the partner of choice for global entertainment companies and create authentic and enduring interactive entertainment based on the world’s most beloved franchises,” said Teemu Huuhtanen, President- CEO of Next Games. “Joining forces with the world’s largest streaming service, Netflix, provides an opportunity for a logical and exciting continuation of our strategy to create interactive experiences for the world to enjoy. Our close collaboration with Netflix on Stranger Things: Tales of Riddles has already proven that together we create a strong partnership. This is a unique opportunity to upgrade the studio on all fronts and continue our mission together.”
The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions. For more information regarding this transaction, please visit www.nextgames.com/investors/netflix-offer.
Netflix is the world’s leading streaming entertainment service with 222 million paid subscriptions in over 190 countries, enjoying TV series, documentaries, feature films and mobile games in a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any screen connected to the Internet. Members can play, pause, and resume viewing, all without ads or commitments.
About upcoming games
Next Games is the leading publicly traded mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The developers of the critically acclaimed The Walking Dead games are redefining how franchise entertainment turns into highly engaging service-based mobile games. Next Games runs on several new games based on beloved global IPs. The company’s latest game, Stranger Things: Tales of Riddlesis based on the hit 80s horror drama series from Netflix. www.nextgames.com