Devolver Digital, the independent publisher behind Hotline Miami, The Talos Principle and Baby Steps, plans to leave the London Stock Exchange and return to private ownership. The proposed reversal follows a 95.3% collapse in the company’s market value since its public listing.
Devolver joined the London Stock Exchange’s Alternative Investment Market in 2021 with a valuation of $950 million. At the time, chief executive Douglas Morin said an initial public offering would support the company’s continued growth and help it back more games.
Five years later, the publisher’s shares value the business at approximately $44.6 million. Game Developer reports that Devolver now believes public trading is poorly suited to the realities of independent game publishing and the wider industry’s recent volatility.
Why Devolver wants to delist
In a statement posted to investors on 6 August, Devolver outlined a plan to remove its shares from the UK exchange. The proposal also includes returning up to $5 million in cash to qualifying shareholders and Depositary Interest holders through a tender offer, subject to shareholder approval.
The company attributed the decision to a games market affected by widespread studio and publisher layoffs, platform rationalisation and substantial impairments. Devolver has also written down several underperforming games while competing in an increasingly unpredictable market.
Devolver says its public-market valuation does not properly reflect the lifetime and long-tail revenue that successful games can generate, particularly when short-term expectations dominate investor sentiment.
Devolver expects the move back into private ownership to reduce annual costs by $1.6 million. The company also argues that its share price is not a fair representation of its underlying value or its financial performance over recent years. Following the announcement, the price has plunged to just 7.15p, equivalent to $0.10.
From Fall Guys success to a major strategic reset
The original decision to float appeared unusual for a relatively small publisher focused exclusively on independent games, including Shotgun Cop Man and Gunbrella. It came soon after Devolver benefited from the enormous success of Fall Guys in 2020, which generated $150 million. Epic subsequently acquired the game’s developer, Mediatonic, in March 2021.
Devolver has not said that its proposed delisting will change its publishing plans. Its stated aim is to give the finance, legal and executive teams more freedom to concentrate on the company’s long-term health instead of meeting public-market demands.
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