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Yesterday (2 March), Next Games reported preliminary H2 2021 results clearly below our expectations, even though we had cut our estimates heavily in December after the company withdrew its guidance as a consequence of postponed UA investments for Stranger Things: Puzzle Tales. The real news of the day, however, related to a tender offer of EUR 2.1 per share made by Netflix, valuing Next Games at EUR 65m. Given Next Games' history with Netflix, we are not overly surprised about the outcome and we think it likely that the deal will close during Q2 2022 as expected. We see that joining Netflix provides Next Games with much-needed resources to develop and scale up new games in the future, following a period of operational and financial difficulties. We make significant estimate cuts following the H2 outcome, but increase our valuation range to EUR 1.8-2.5 (1.3-1.8) due to the tender offer. Marketing material commissi oned by Next Games.

Source: Finwire News.

Next Games is a developer and publisher of licensed mobile games. We are a trendsetter in service-based mobile games based on mass entertainment products such as movies, TV series or books. We develop games in close cooperation with the license owners of the entertainment products to ensure a tight connection between the game and the original entertainment product – for instance a TV-series. So far, we have published two games that have received praise from the critics, both in 2015. Our game The Walking Dead: No Man’s Land has been downloaded approximately 16 million times.