Devolver Digital considers return to private ownership after 96% share loss
Intelligence Summary
- Devolver Digital is weighing a return to private ownership after a sharp share-price drop. What could it mean for the publisher's future?
In brief
- Devolver Digital is considering a return to private ownership after a significant drop in its share price.
- The company believes its current share price of £34.64m does not reflect its true value, which was estimated at £694.6m at its 2021 IPO.
- Shareholders will vote on the proposal on 8 September, with a possible implementation on 16 September.
Devolver Digital, known for its innovative and often unconventional games, has announced that it is considering a return to private ownership. The move follows a dramatic fall in its share price, which has dropped by as much as 96.27% since its 2021 IPO. The company believes its current market value of around £34.64m does not align with its true worth, prompting it to explore this step.
GAME-scanner analysis
Devolver Digital's decision to consider going private can be seen as a strategic move to regain control of the company and focus on its core business without the pressure of the public market. Shareholders will vote on the decision on 8 September, and if approved, Devolver will stop trading shares on 16 September. This could pave the way for more flexible operations and potentially new investment in game development.
What does this mean for players?
For players, this development could be both positive and negative. On the one hand, a private Devolver Digital may be better able to focus on creating unique and well-regarded games without the pressure of quarterly results. On the other hand, the lack of public transparency could mean less insight into the company's operations and future releases.
Timeline
2021-08-07: Devolver Digital goes public with an initial valuation of £694.6m.
2026-09-08: Shareholders vote on the proposal to go private.
2026-09-16: If approved, Devolver Digital stops trading shares.