Devolver Digital is planning a return to private ownership, signaling a significant change for the indie game publisher.
In a new announcement on their website, the company openly acknowledges the volatile state of the gaming industry. They recognize they have navigated operational headwinds, including several underperforming releases and an increasingly competitive market, and now they want to focus on strengthening the company’s financial performance.
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Why Devolver Digital Wants to Go Private Again
In an announcement posted on its investor relations page, Devolver Digital, known for Fall Guys and Cult of Lamb, among other titles, is proposing to cancel the admission of its shares to trading on the AIM market of the London Stock Exchange.
Among the reasons for cancellation is an interesting line concerning Devolver’s business as an indie publisher. It states that the company’s financial performance is directly linked to the timing and scale of individual releases, and further notes that development times can be unpredictable and hurt financial performance across periods.
the nature of Devolver’s business as an indie game publisher and developer is that financial performance is inherently linked to the timing and scale of individual titles. Development timelines can be unpredictable, and, as a result, financial performance can vary significantly between reporting periods and may not follow a linear progression. The Board feel this irregularity has not been readily compatible with the requirements of the market for semi-annual reporting with an emphasis on predictable, sequential growth. Consequently, the Company has at times faced increased pressure to deliver short-term market expectations that do not necessarily reflect the underlying long-term value creation potential of its portfolio and development pipeline.
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For more, check out the news that Double Fine announced layoffs mere weeks after becoming an independent studio once again. Also, don’t forget to sign up for our weekly newsletter.
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