Shares in DoubleDown soar nearly 16% as majority shareholder raises offer to acquire full ownership of the business
South Korea-listed DoubleU Games has made an improved offer to acquire full ownership of social casino and real-money iGaming operator DoubleDown Interactive.
DoubleU is the company’s controlling shareholder with approximately 67.05 per cent of DoubleDown’s outstanding common shares and made an offer in April to acquire all outstanding shares (including American Depositary Shares) for $11.25 per share in cash.
DoubleU has now agreed to commence an all-cash tender offer to acquire all outstanding American Depositary Shares (ADS) of DoubleDown for $16.25 per ADS in cash. Each ADS represents one-twentieth of one common share of DoubleDown.
The change in structure was determined following discussions with a Special Committee composed solely of DoubleDown’s independent and disinterested directors, with advice from independent legal and financial advisors.
The Special Committee has unanimously determined that the transaction, which has the backing of DoubleDown’s board of directors, is in the best interests of the company and its shareholders.
The tender offer is subject to customary conditions, including a minimum tender condition that DoubleU must own at least 90 per cent of DoubleDown’s outstanding common shares.
In the event that the offer is completed, DoubleU has agreed to acquire the remaining common shares (including common shares represented by ADSs) not acquired in the offer through a second-step transaction under the Korean Commercial Act for the same price per ADS.
DoubleU Games expects to fund the offer and the second-step transaction with cash on hand and financing from a bridge loan facility of up to KRW300 billion (approx. €200.5 million), for which Korea Investment & Securities is acting as mandated lead arranger, facility agent and security agent.
DoubleDown’s operates the flagship social casino title DoubleDown Casino, alongside other social casino brands acquired from Germany-based WHOW Games. In addition, DoubleDown’s subsidiary SuprNation operates three real-money iGaming sites in Western Europe.
DoubleDown Interactive will release its financial results for the third quarter of 2026 after the market closes tomorrow.
Shares in DoubleDown Interactive Co Ltd (NASDAQ:DDI) soared by 15.61 per cent to close at $15.70 per share in New York following the announcement Monday, while shares in DoubleU Games Co Ltd (KRX:192080) closed 8.07 per cent higher at ₩58,900.00 in Seoul Tuesday.