Devolver Digital has announced plans to leave the public stock exchange, proposing to be delisted from the UK's AIM market. An investor relations announcement confirms that a vote on the proposition will take place at a general meeting on September 8.
Quick Facts
- Company: Devolver Digital
- Action: Proposed delisting from the UK's AIM market
- Vote Date: September 8 general meeting
- Estimated Annual Savings: Approximately $1.6 million by going private
Reasons for the Stock Market Exit
Devolver Digital went public in November 2021, supported by early successes including Fall Guys. In the announcement regarding the proposed change, the company pointed to significant disruption, widespread layoffs, platform rationalization, and substantial impairments across the global video games industry since that time.
Directors stated that the company's share price does not reflect its true market value and that the stock market has not rewarded the company for its successes. Furthermore, Devolver noted that video game development timelines are inherently unpredictable, causing financial performance to vary significantly between reporting periods rather than following a linear progression required by public market semi-annual reporting.
Impact on Operations and Long-Term Strategy
According to the publisher, operating as a publicly quoted company created ongoing pressure to deliver short-term market expectations that overlooked the lifetime and long-tail revenue delivery characteristic of games. By returning to a private structure, the executive, finance, and legal teams aim to focus entirely on the long-term health of the company's portfolio and development pipeline while saving roughly $1.6 million annually.