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

There is more M&A going down in the country as it ponders joining Nato in the wake of Russia's invasion of Ukraine. Next Games, a developer of mobile games in the country, will be acquired byNetflix for $65 million. Next Games is listed on the public markets in Helsinki, and the deal is being done as an all-cash share purchase. The board of the gaming company has already approved the deal and it is expected to close in the second quarter of 2022.

Neflix has a bigger strategy to build out its gaming content as a complement to its video catalogue and Next Games is a perfect fit. The two companies already had a strong relationship because the free-to-play mobile games publisher has developed titles related to some of the biggest shows on the streaming service. Next Games will bring in-app purchases, intellectual property, and existing business in-house to improve the margins.

Next Games has a seasoned management team, strong track record with mobile games based on entertainment franchises, and solid operational capabilities. I am confident that we will be able to build a portfolio of world class games that will delight our members around the world, while we are just getting started in games.

At the end of the year, Next Games had 120 employees and had revenues of 27.2 million. In-game purchases made up most of its sales that year. It will have more money to double down on existing titles.

The founder and CEO of Next Games is an alumni of the extensive gaming community in Finland. Before Next Games, he was an executive at the Angry Birds publisher. He spent a decade at Sulake, where he was responsible for the creation of Habbo Hotel.

To become the partner of choice for global entertainment businesses and craft authentic and long- lasting interactive entertainment based on the world's most beloved franchises has been a priority for Huuhtan. The collaboration between us on Stranger Things: Puzzle Tales has proven that we have a strong partnership. This is a unique opportunity to level-up the studio on all fronts.

Five acquisitions have been made by the company over the years, according to the data. There is a gaming angle in its M&A strategy, as evidenced by the fact that Next Games is its first specifically in gaming.

At a time when companies like Disney can continue to pull the rug out from underNetflix by pulling away key video content to improve the selection on their own streaming video platforms, this is also one way for the company to fertilize its own walled garden. Buying Next Games shows a strategy to produce or buy in its own exclusive work, and now build out bigger franchises based on it across multiple screens and experiences.