Indie game publisher Devolver Digital wants to go private

Indie game publisher Devolver Digital is planning to return to private ownership, following a difficult period as a publicly-traded company. In a statement to investors, the company expressed that it believed the current share price did not accurately reflect the true market value of the business. Devolver Digital has faced the ongoing challenge of delivering growth in line with market expectations, despite industry turmoil since its initial public offering back in 2021.

At the time of going public, the company was valued at £694.6m, or approximately $950m. However, since then, the share price has plummeted by 96.27 percent, reducing the company's value to around £34.64m, or $46.63m.

The decision to return to private ownership will be determined by Devolver Digital's shareholders, who will vote on the matter during the company's annual general meeting on September 8th. If approved, the company will become private on September 16th. In a statement to Gamesindustry.biz, a spokesperson for Devolver Digital emphasized that the move is in the best interests of the company, its employees, partners, and shareholders.

They believe becoming a private company will allow the team to focus on the long-term health of the business and less on meeting the demands of the public market, which they argue have little relevance to being a successful game publisher.

If Devolver Digital decides to go private, it is estimated that the company will save around $1.6m per year. The stock market has been particularly challenging for video game companies since the COVID-19 pandemic, which initially led to a surge in industry growth. However, since then, layoffs have become a common occurrence, even among larger companies. Despite this, Devolver Digital has continued to publish games during this period of uncertainty, including popular titles such as Cult of the Lamb and Skate Story.