Netflix acquires mobile game developer Next Games for €65 million to expand its game library. Netflix today announced the acquisition of Finlands Next Games, a mobile game developer, for a total of 65 million euros ($72 million).
This week, Netflix said it plans to acquire its second video game studio, the hit original Stranger Things series. The video streaming platform has acquired gaming company Next Games for 65 million euros, according to a statement released in the past few hours. Netflix paid $72.3 million for all outstanding shares in the Helsinki-based game studio, pending standard closing terms.
The offer provides a premium of almost 70% compared to the weighted average price per share (€1.24) of Next Games shares in the previous half and 125.6% compared to the March 1 closing price. The acquisition is part of Netflix’s broader strategy to create Netflix game content as a complement to its video catalog, and Finlands Next Games is a perfect fit for this strategy.
This acquisition will cement a strong relationship and boost Netflix’s profitability, beyond simply licensing some of Netflix’s biggest projects, bringing in Next Games’ intellectual property, existing talent, and businesses that sell in-app purchases. The purchase will make a strong relationship permanent and boost the streaming giant’s bottom line, in addition to licensing titles from Netflix’s biggest projects. Finlands Next Games has already developed games related to some of Netflix’s biggest titles like Stranger Things and The Walking Dead, which means the two companies already have a strong relationship.
Netflix hasn’t revealed what mobile game developer Next Games will be working on, but Netflix has confirmed that none of the games will feature ads or in-app purchases. “Since Netflix is just getting started with gaming, I am confident that in partnership with mobile game developer Next Games, we will be able to build a world-class portfolio of games that will delight our users”. Netflix releases a range of games, starting with some mobile games, as an extension of Netflix’s core video entertainment at no additional cost. Last year, Netflix ramped up its pursuit of gaming as it looks to expand beyond streaming.
Netflix is the world’s leading entertainment streaming service with 222 million paid subscriptions in over 190 countries, streaming series, documentaries, movies, and mobile games in a wide variety of genres and languages. This acquisition is just the latest acquisition by Netflix’s game studio following Netflix’s purchase of Oxenfree Night School in 2021. If you were a bit confused by the purchase, Netflix announced in November that it was launching the gaming platform on Android and iOS. Netflix has hired Facebook’s Mike Verdu as VP of Games as it continues to build its games division from the ground up.
