Netflix set to purchase mobile game developer Next Games for $72 million
Netflix purchasing a video game studio? Stranger Things have happened.
Trent Cannon 
Image via Next Games
Netflix is one of the biggest names in the entertainment industry and has completely changed the world of streaming television, but many people might not realize they also have a gaming division. Generally, they outsource the development of games based on their properties to other studios, but their latest acquisition could show a change in their strategy.
Netflix has acquired Next Games, the developers of titles based on Stranger Things and The Walking Dead mobile games, for a healthy sum of €65 million – or approximately $72 million. In the official announcement on Next Games’ website, Netflix’s vice president of games Michael Verdu said, “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 deal still needs to be approved by the shareholders of Next Games, but that is likely to be an easy sale to them for the price being offered.
While this deal might not be on the same scale as other acquisitions in 2022, it shows a new direction for the entertainment giant. According to games industry analyst Piers Harding-Rolls, this is consistent with Netflix’s strategy of bringing small but established studios with whom they’ve had a previous working relationship. In a short thread on Twitter, he pointed out that this makes them more easily integrated into the corporate structure of Netflix.
This purchase could be the start of a new acquisitions strategy for Netflix, which has around 200 million subscribers worldwide to their streaming service. The monthly revenue that a large customer base generates should give them the cash-on-hand to drive similar purchases in the future.
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