Devolver Digital wishes to delist from the Alternative Investment Market (AIM) on the London Stock Exchange and become a private company after struggling to balance the realities of public trading and video game publishing.
In a note to investors published earlier today, the Hotline Miami, Baby Steps, and Poinpy publisher claimed the move is in the best interests of shareholders and will result in a proposed return of capital of up to $5 million in cash to qualifying shareholders and holders of depositary interests.
If approval is granted, Devolver expects to cease trading on AIM on September 16, 2026.
Outlining its rationale for delisting, Devolver said public trading has resulted in a “valuation disconnect” as a result of disruption and volatility across the video game industry.
“The global video games industry has undergone a period of significant disruption and volatility, characterised by widespread layoffs for studios and publishers, platform rationalisation and substantial impairments across the industry,” stated the company.
“Devolver has during this time navigated a number of operational and market headwinds, including several impairments of underperforming titles amid an increasingly competitive and unpredictable market environment. As a publicly-quoted company, Devolver has faced the ongoing challenge of delivering growth in line with market expectations despite those difficult sector conditions, resulting in a valuation disconnect that does not take account of the lifetime and long-tail revenue delivery inherent in the video games business.”
Devolver went public in 2021 at a valuation of $939.8 million. Yet, as noted on the company’s investor relations website, Devolver is currently valued at around $46 million. In other words, the publisher’s share price has fallen by 91.35 percent over the past five years.
Devolver’s board of directors, however, feels that performance does not reflect the “true market value” of the company and claimed “the stock market has not rewarded the company for its successive and substantive operational improvements over the last six consecutive halves through to the end of 2025.”
“The Company’s revenues, gross margins and Adjusted EBITDA all improved in 2025 compared to 2024, and the June 2026 Trading Update further highlighted revenue growth of over 60 per cent. year-on-year, yet the closing share price as of 5 August 2026, of £0.16 is over 25 per cent. lower than the £0.215 price immediately after the announcement of the Company’s 2024’s annual results,” added the company.
Devolver said the unpredictable nature of indie publishing is not “readily compatible” with the reality of semi-annual public reporting, which places an emphasis on “predictable, sequential growth.”
“Development timelines can be unpredictable, and, as a result, financial performance can vary significantly between reporting periods and may not follow a linear progression,” it explained.
“[…] 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.”
Annual cost savings of $1.6 million (associated with trading on AIM) are expected to be achieved if Devolver’s cancellation is successful. The company’s board of directors claims that cash could be more effectively used to “drive future revenue and growth.”
Game Developer has reached out to Devolver for more information.