Netflix Dives Deeper In Gaming With Latest Acquisition

Netflix Inc NFLX has agreed to acquire mobile games provider Next Games. Next Games shareholders will receive €2.1 in cash per share of Next Games, for a total equity value of €65 million.

Next Games' strategy is to develop games based on popular entertainment IP, such as Stranger Things: Puzzle Tales, a story-driven puzzle role-playing game (RPG) inspired by one of Netflix's most-watched series.

Next Games reported sales of €27.2 million in 2020, with 95% of revenues generated from in-game purchases. The transaction will likely close in the second quarter of 2022.

Michael Verdu, VP of Games, Netflix, said, "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."

Netflix began offering games on mobile in November 2021. It held $6.03 billion in cash and equivalents as of December 31.

Price Action: NFLX shares traded lower by 1.83% at $379.19 in the market on the last check Wednesday.