By Sam Boughedda
Investing.com -- Netflix Inc (NASDAQ:NFLX) has agreed on a deal to acquire Finnish mobile game developer Next Games (HE:NXTGMS), the streaming giant said Wednesday.
Netflix is set to pay €2.1 in cash per share of Next Games, for a total equity value of approximately €65 million ($72 million).
The deal sees Netflix push further into the gaming market after rolling out mobile games to subscribers toward the end of 2021. Next Games is the company behind a mobile game based on the Netflix show “Stranger Things.”
The gaming company said its strategy is to develop games based on popular entertainment IP, such as Stranger Things. At the end of 2021, the company had approximately 120 employees and reported sales of roughly €27.2 million ($30.1 million) in 2020, with 95% of revenues generated from in-game purchases.
"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," added Verdu.
The deal is expected to close in the second quarter of 2022.