Evaluating only Next Games’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Ex-Rovio executives Teemu Huuhtanen and Kalle Hiitola found Next Games in Helsinki to build licensed IP mobile games.
FUNDING
IPO on Nasdaq Helsinki raises €15M; Walking Dead: Our World launches to strong initial download numbers.
DOWN ROUND
User acquisition costs spike; DAUs decline across all titles; company posts €20M+ operating loss for the year.
ACQUISITION ATTEMPT
Netflix acquires Next Games for €65M in March 2022, far below peak market cap; independent operations end.
Full Analysis
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Documented cause
Next Games, founded by ex-Rovio executives Teemu Huuhtanen and Kalle Hiitola in Helsinki, went public on Nasdaq Helsinki in 2017 raising €15M. The mobile gaming firm licensed Walking Dead and Stranger Things IP but suffered severe user acquisition cost spikes and declining DAUs. After posting massive losses in 2021, Netflix acquired the company for €65M in 2022, a fraction of its peak valuation, ending its independent run.
Lesson
“Licensed IP creates temporary downloads but cannot substitute for organic gameplay retention and low UA costs.”