Press Release March 2, 2022 at 09:30 a.m. (EET)
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 commence a tender offer process to acquire all of the issued and outstanding shares of Next Games. Pursuant to the offer, Next Games shareholders would receive EUR 2.10in cash per share of Next Games, for a total value of approximately EUR 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,” said Michael Verdu, Vice President of 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, Next Games creates and operates engaging mobile games with an authentic and social fan experience at the heart. The company's strategy is to develop games on popular entertainment IP with fans across the globe, including Stranger Things: Puzzle Tales, a story-driven puzzle role playing game (RPG) inspired by one of Netflix's most watched series. The company had approximately 120 employees at the end of 2021 and reported sales of approximately EUR 27.2 million in 2020, with 95% of revenues generated from in-game purchases in 2020.
“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,” said Teemu Huuhtanen, Chief Executive Officer, Next Games. “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.
More details regarding the combination agreement will be available on www.nextgames.com/investors/netflix-offer.
Audiocast and conference call:
Next Games will host an English language audiocast and phone conference on the announcement for at 11:00-11:30 EET on Wednesday March 2, 2022. The audiocast recording can be viewed later on the same day at: www.nextgames.com/investors.
The audiocast can be viewed at: https://nextgames.videosync.fi/2022-03-02-audiocast-11am
Conference call details:
Finland Toll: +358981710310
Denmark Toll: +45 35445577
Germany Toll: +49 6913803430
Norway Toll: +47 23500243
Sweden Toll: +46 856642651
United Kingdom Toll: +44 3333000804
United States Toll: +1 6319131422
Investor relations: email@example.com.
Certified Adviser: Alexander Corporate Finance Oy, tel. +358 (0) 50 520 4098
Netflix is the world's leading streaming entertainment service with 208 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.
About Next Games
Next Games is the first publicly listed 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 redefine the way franchise entertainment transforms into highly engaging service-based mobile games. Next Games works on multiple new games based on beloved global IP’s. The company’s latest game, Stranger Things: Puzzle Tales, is based on Netflix’s hit 80s horror drama series. www.nextgames.com