Devolver Digital is planning to go private, which will be decided after a September 8, 2026, vote. In a new press release, the company proposed a return of up to $5 million to investors by way of a Tender Offer. The reasons for the decision were also outlined in the announcement.
Devolver Digital is an indie video game publisher with a balanced portfolio that includes both in-house and third-party IPs. The publisher has published more than 150 titles, including Cult of the Lamb, The Talos Principle (I&II), Enter the Gungeon, among others. They also have more than 30 titles in the pipeline scheduled for release over the next three years.
ALSO READ: Ghost Recon 25 Years Anniversary: Ubisoft CEO Announces Free Last Rites Update
Explaining the reasons for the proposed return to a private company, Devolver Digital noted that since the admission of its Shares for trading on November 5, 2021, “the global video games industry has undergone a period of significant disruption and volatility”, including mass layoffs and studio closures.
“Devolver has during this time navigated a number of operational and market headwinds, including several impairments of underperforming titles amid an increasingly competitive and unpredictable market environment,” the company said.
“As a publicly-quoted company, Devolver has faced the ongoing challenge of delivering growth in line with market expectations despite those difficult sector conditions, resulting in a valuation disconnect that does not take account of the lifetime and long-tail revenue delivery inherent in the video games business”.
After careful consideration, the Board decided it was in the best interests of the company and its shareholders to cancel trading. Their primary focus is on strengthening the company’s financial performance.
For the proposed cancellation by Devolver Digital to scale, they need not less than 75% of the votes cast by shareholders at the upcoming general meeting to go in their favor, pursuant to AIM Rule 41 of the London Stock Exchange.
Are you in support of the arguments raised by Devolver Digital that the company’s share price does not reflect its true market value and that the stock market has not rewarded its successive and substantive operational improvements over the last six consecutive halves through to the end of 2025?
