Netflix Offers $72M To Acquire Game Developer

Netflix has reportedly offered to acquire Next Games, the developer behind “Stranger Things: Puzzle Tales” and two “Walking Dead” mobile games, for around $72 million.

The proposed deal, which expands the streaming giant’s push into gaming, is expected to close in the second quarter of the year. Netflix has already expressed its interest in live sports, too, particularly Formula 1.

• Netflix hired Mike Verdu, Facebook’s former vice president of augmented reality and virtual reality content, as the company’s vice president of games.
• In September, the company acquired “Oxenfree” video game developer Night School Studio.
• It began offering its first mobile games to subscribers in November, including “Stranger Things: 1984,” and “Shooting Hoops.”
• The same month, Netflix licensed the 2016 game “Asphalt Xtreme” exclusively for subscribers.

Verdu hinted that the acquisition will allow Netflix to make its own games, expressing in a blog post that the acquisition will help “build a library of games for our members to enjoy.”

During the acquisition of Night School Studio, Verdu said Netflix will “continue working with developers around the world” and “deliver a great collection of exclusive games designed for every kind of gamer.”

Next Games’ Next Move

The mobile game developer’s board of directors has recommended that shareholders accept Netflix’s offer. Next Games reported $30.1 million in 2020 revenue, and 95% came from in-game purchases.

Verdu emphasized that the games will be included in Netflix’s preexisting membership.