The well-known indie publisher Devolver Digital, which gave Nintendo Switch owners hits like Cult of the Lamb and many others, is considering returning to private ownership. After going public in 2021, the company faced a series of financial challenges.
Why is the company leaving the stock exchange?
In a press release for investors, Devolver Digital representatives stated that the current stock value absolutely "does not reflect the true market value" of the company. When the publisher went public, it was valued at approximately 950 million dollars. Since then, the stock price has fallen by 96.27%, lowering the company's value to about 46.6 million dollars.
Main reasons for this step:
- Cost savings: Transitioning to private company status will save about 1.6 million dollars annually.
- Focus on games: Management will be able to focus on long-term development rather than satisfying the demands of the public market.
- General crisis: After the boom during the COVID-19 pandemic, the video game market is experiencing a downturn.
The fate of Devolver Digital depends on its shareholders. The vote will take place on September 8. If the decision is supported, the company will become private as early as September 16. Hopefully, these changes will help the publisher continue to release wonderful indie games on the current console and the upcoming Switch 2.
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