Netflix is making another acquisition to bolster its nascent video games business.
The subscription streaming giant is buying Finland’s Next Games, in a deal that values the game developer at about $72 million.
Next Games, which was founded in 2013, specializes in mobile games and is best known in the U.S. for a game based on Netflix’s intellectual property, Stranger Things: Puzzle Tales. The company had revenue of about $30 million in 2020, mostly from in-app purchases.
Next Games will join another mobile gaming studio, Oxenfree developer Night School Studio, within the Netflix gaming group. The streamer acquired Night School in September.
Netflix only announced its push into video games last summer, with an initial focus on mobile games that will be added to the company’s existing subscription offering. It’s first slate of games launched in November, including two Stranger Things-themed titles.
The gaming push is part of a larger effort by Netflix to not only delight its members but to serve them on more platforms, and in particular on mobile, where people are less-inclined to watch full-length movies and TV shows.
“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 for 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.”
The Next Games acquisition is expected to close in Q2 2022.
