On Mar. 2, Netflix announced that it would buy Next Games, a game developer in Finland that created mobile games inspired by TV shows.

The streaming giant purchased Next Games for $72 million. The game developer is listed on the public markets in Helsinki, and the deal is being done as an all-cash share purchase, which costs $2.33 per share.

Netflix Buys Next Games

The board of the gaming company has approved the deal and is recommending it to shareholders, but it has yet to be completed. However, the deal is expected to close in Q2 2022, according to TechCrunch.

The deal with Next Games is part of Netflix's strategy to build out its gaming content to complement its video catalog, and the game developer fits the streaming company's goal.

The game developer already has developed titles from Netflix's biggest draws, like "Stranger Things," and "Walking Dead," which means that the two companies already had a strong relationship.

Also Read: Netflix Bought Full Season Of 'Stranger Things' The Day After Hearing Its Pitch

The deal between the two companies will make that relationship permanent and improve Netflix's margins beyond just licensing the brands. Now, Netflix can bring Next Games' IP, talent, and business selling in-app purchases in-house.

The vice president of games at Netflix, Michael Verdu said that Next Games has a seasoned management team, a strong track record with mobile games based on entertainment franchises, and operational capabilities.

Verdu added that they are excited for Next Games to join the streaming company as a core studio in a strategic region and key talent market, expanding their internal game studio capabilities, according to Newswire.

Verdu said that they are just getting started in games, and he is confident that with Next Games, they will be able to build a portfolio of world-class games that the members worldwide will be happy with.

Next Games' Standing

Next Games had a total of 120 employees at the end of 2021, and its latest annual results showed $30 million in revenues in 2020, according to CNBC.

Around 95% of its sales came from in-game purchases that year. Now, it will have more investment to double down on existing titles and create more using Netflix's catalog.

The founder and CEO of Next Games, Teemu Huuhtanen, is an alum of Finland's gaming ecosystem, which has played a massive role in breaking new ground in gaming over the past few years.

Just before Next Games, Huuhtanen was an executive at Rovio, the publisher of "Angry Bird." Before that, he was at Sulake for 10 years, a company known in the virtual world for its creation of "Habbo Hotel."

Huuhtanen said in a statement that they had had an unwavering focus to execute on their vision, which is to become the partner of choice for global entertainment businesses and craft authentic and long-lasting interactive entertainment based on the most loved franchises.

Huuhtanen added that joining forces with Netflix allows them to have a logical and exciting continuation of their strategy to craft interactive experiences for everyone to enjoy.

Next Games' close collaboration with Netflix on "Stranger Things: Puzzle Tales" has already proven that the two companies can create a strong partnership.

Related Article: Netflix's 'Stranger Things' Becomes Most Popular Digital Original Series: Here's Why Viewers Are Hooked

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Written by Sophie Webster