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| Netflix wants to make world-class games |
Netflix has offered to acquire Next Games, the Finnish game developer behind Stranger Things: Puzzle Tales.
“This acquisition is designed to help the company build a library of great games for our members,” said Mike Verdo, Vice President of Games at Netflix, in a blog post. Next Games has also developed two The Walking Dead mobile games. .
The acquisition comes as Netflix is integrating a mobile game service into its regular subscription service. Netflix Games for iOS and Android launched last year.
Netflix Games includes mobile games that can be downloaded for free from the App Store for subscribers of the service, with no ads or in-app purchases.
"Having just started playing, I believe that with Next Games we will be able to build a world-class portfolio of games that will delight our members around the world," Verdo wrote.
So far, our third party partners have developed many games on Netflix Games. Both games are based on the Stranger Things franchise, and Texas-based BonusXP is listed as the developer.
Netflix acquired for €65 million
Netflix also licenses existing Asphalt Xtreme games exclusively to its subscribers. But with last year's acquisition of Next Games and Night School Studio, it appears that the streaming giant is poised to develop more games for its in-house division.
Acquisitions of streaming services are relatively rare, with only five names. But the Next Games acquisition comes at a time when companies like Microsoft and Sony are making massive acquisitions from developers that are widely seen as a way to build their own gaming subscription services.
Netflix has offered to buy Next Games for 65 million euros ($72 million). The offer equates to €2.1 per share in cash, more than double the closing price of €0.93. Accordingly, the Next Games board of directors recommends that shareholders accept the proposal.
The companies expect the deal to close in the second quarter of 2022. By the end of 2021, Next Games will employ up to 120 people.
The latest annual results also showed sales of €27.2 million in 2020. About 95% of sales that year came from in-game purchases.