Netflix acquires Next Games in Finland, publisher of Stranger Things and Walking Dead games, for $72M

techcrunch.com:

As Finland mulls joining Nato in the wake of Russia’s unprovoked invasion of Ukraine, another bit of M&A is going down in the country. Today Netflix announced that it would be acquiring Next Games, a developer of mobile games in the country for a total value of €65 million ($72 million). Next Games is listed on the public markets in Helsinki, and the deal is being done as an all-cash share purchase at €2.10 in case per share. The board of the gaming company has already approved the deal and is recommending it to shareholders although it has yet to be completed but is expected to close in Q2 2022.

The deal is part of Neflix’s bigger strategy to build out its gaming content as a complement to its video catalogue and Next Games is a perfect fit. THE free-to-play mobile games publisher already has developed titles related to some of Netflix’s biggest draws, such as Stranger Things and The Walking Dead — meaning the two companies already had a strong relationship. This deal will cement that, and improve Netflix’s margins beyond simply licensing the brands, by bringing Next Games’ IP, talent, and existing business selling in-app purchases, in house.

“Next Games has a seasoned management team, strong track record with mobile games based on entertainment franchises, and solid operational capabilities,” said Michael Verdu, VP of games at Netflix, in a statement. “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.”

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