Netflix, Inc. (NASDAQ: NFLX) confirmed that it has inked a combination agreement to purchase Next Games (NXTGMS). Next Games has a seasoned management team and also has a successful history with mobile games based on entertainment franchises and solid operational capabilities. Next Games will join Netflix as a core studio in a strategic region and key talent market, growing its internal game studio capabilities.
Next Games was established in 2013 and headed by Teemu Huuhtanen. It develops and publishes compelling mobile games with a global audience and a genuine and social fan experience at its core. Stranger Things: Puzzle Tales, a story-driven puzzle role-playing game (RPG) inspired by one of Netflix’s most popular series, is an example of the company’s approach to developing games based on popular entertainment IP.
Next Games disclosed that partnering with Netflix, the world’s largest streaming service, gives a chance for a logical and exciting extension of Next Games’ approach to creating interactive experiences for the globe to enjoy, according to the company. Its close relationship with Netflix on Stranger Things: Puzzle Tales has already demonstrated that the two companies work well together. This is a once-in-a-lifetime opportunity to take the studio to the next level in all aspects and continue on its purpose as a team.
Transaction Details
Netflix will launch a tender offer to buy all of Next Games issued and outstanding shares under the provisions of the contract. Next Games stockholders will get €2.1 in cash per share of Next Games as part of the offer, for a total equity value of around €65 million. The Next Games Board of Directors has unanimously voted to propose to the shareholders that they approve the tender offer. Furthermore, the deal is likely to end in the Q2 of 2022.