Netflix, Inc. (NASDAQ: NFLX) announced today that it has entered into a merger and acquisition agreement to acquire Next Games (NXTGMS). According to the terms of the agreement, Netflix will launch a tender offer to purchase all of Next Games’ issued and outstanding shares. Next Games stockholders will get €2.1 in cash per share of Next Games, for a total equity value of about €65 million, under the terms of the offer. Next Games’ Board of Directors unanimously resolved to propose that 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,” stated Michael Verdu, Netflix’s Vice President of Games. “We are thrilled that Next Games will be joining Netflix as a core studio in a crucial location and significant talent market, hence extending our internal game studio capabilities. While we are only getting started in gaming, I am certain that we will be able to establish a portfolio of world-class games that will thrill our members all around the world in collaboration with Next Games.”
Next Games, founded in 2013 and led by Teemu Huuhtanen, produces and runs compelling mobile games with worldwide appeal and a focus on a genuine and social fan experience. The company’s aim is to create games based on famous entertainment IP, such as Stranger Things: Puzzle Tales, a puzzle role playing game (RPG) inspired on one of Netflix’s most popular programs. The firm had roughly 120 workers by the end of 2021 and recorded sales of approximately €27.2 million in 2020, with in-game purchases accounting for 95 percent of revenues.
“We have had an unwavering focus on executing on our vision: to become the partner of choice for global entertainment businesses and to craft authentic and long-lasting interactive entertainment based on the world’s most beloved franchises,” stated Teemu Huuhtanen, CEO of Next Games. “Joining forces with Netflix, the world’s largest streaming service, presents an opportunity for a logical and exciting continuation of our strategy to create interactive experiences for the entire world to enjoy.” Our tight work with Netflix on Stranger Things: Puzzle Tales has already demonstrated that we make a powerful team. This is a once-in-a-lifetime chance to improve the studio on all fronts and continue our objective together.”