DoubleDown Interactive Enters into Agreement to Acquire German Social Casino Operator WHOW Games

Rhea-AI Summary

DoubleDown Interactive (NASDAQ: DDI) has announced a strategic acquisition of German social casino operator WHOW Games from Azerion Tech Holding for an initial consideration of €55 million ($64.7 million), with potential additional earn-out payments of up to €10 million.

WHOW Games, headquartered in Hamburg, generated €41.8 million in unaudited revenue for calendar year 2024. The company operates popular social casino apps including MyJackpot and Lounge777, along with third-party branded offerings like Merkur24. The acquisition, expected to close in Q3 2025, will be funded through DoubleDown's cash reserves and aims to strengthen the company's presence in the growing European social casino market, particularly in Germany.

Positive

• Strategic expansion into growing European social casino market, particularly Germany
• WHOW Games generated significant revenue of €41.8 million in 2024
• Acquisition provides diversified portfolio including proprietary and third-party branded social casino apps
• Deal structure includes performance-based earn-out, aligning interests for growth
• Acquisition to be funded through existing cash reserves, indicating strong financial position

Negative

• Substantial initial investment of €55 million with additional €10 million potential earn-out
• Integration risks with European operations and different market dynamics
• Execution risk in achieving synergies and performance targets

Insights

M&A Analyst

DoubleDown's €55M WHOW Games acquisition strategically expands into growing European social casino market with strong synergy potential.

DoubleDown Interactive's acquisition of WHOW Games represents a strategic expansion into the European social casino market, particularly Germany. The deal structure includes €55 million upfront with potential €10 million in performance-based earn-outs over two years. What makes this acquisition particularly noteworthy is WHOW's €41.8 million in unaudited 2024 revenue, suggesting a reasonable valuation multiple of approximately 1.3x revenue before earn-outs.

The transaction offers three compelling strategic advantages: geographic diversification into the growing European social casino market; business model diversification through WHOW's partner-driven approach with third-party labeled offerings; and operational synergies by combining DoubleDown's marketing capabilities and game content with WHOW's European market expertise.

This cash-financed acquisition leverages DoubleDown's strong balance sheet without adding debt burden, while the earn-out structure intelligently aligns incentives for the WHOW management team during the integration period. The European social casino market's growth trajectory contrasts with the mature overall market, suggesting DoubleDown is targeting expansion in a pocket of opportunity rather than simply increasing scale in existing markets.

The synergy potential between these companies appears significant – DoubleDown gains immediate access to European distribution channels and WHOW's partner relationships, while WHOW benefits from DoubleDown's operational expertise and content library. This transaction could meaningfully accelerate DoubleDown's international growth strategy beyond its recent expansion into real-money gaming through SuprNation.

SEOUL, South Korea, July 08, 2025 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading gaming company delivering exceptional player experiences across multiple genres, announced today that the Company entered into a Share Purchase and Transfer Agreement with Azerion Tech Holding B.V. to acquire WHOW Games GmbH, a social casino developer headquartered in Hamburg, Germany. The initial consideration for 100% ownership interest in WHOW Games is €55 million (approximately $64.7 million⁽¹⁾). An additional earn-out payment of up to €10 million, payable to Azerion at €5 million annually, is contingent upon WHOW Games meeting certain performance targets during each of the first and second year following the closing date. The acquisition will be financed through DoubleDown’s cash reserves and is expected to close during the third quarter of 2025.

DoubleDown intends to leverage WHOW Games’ proven expertise in the Europe market and partner-driven business model alongside its own operational strength, marketing capabilities, and extensive gaming content to pursue growth opportunities in Europe, particularly in Germany.

WHOW Games Highlights

• Strong presence in the European social casino market, particularly in Germany
• Calendar 2024 revenue (unaudited) of €41.8 million
• Diversified portfolio of social casino apps including proprietary brands such as MyJackpot and Lounge777 as well as third-party labeled social casino offerings
• Presents synergy opportunities with DoubleDown through leveraging operational expertise, marketing, game content, and development resources to drive growth in the European social casino market
  
  

According to research from Eilers & Krejcik Gaming, LLC, the European social casino market grew in 2023 and 2024 as compared to the overall market which has entered a mature stage. WHOW Games offers a versatile portfolio of social casino apps with proprietary brands such as MyJackpot and Lounge777 as well as third-party labeled social casino offerings including Merkur24 through strategic licensing agreements with prominent global brick and mortar casino companies.

In Keuk Kim, Chief Executive Officer of the Company, said, “This acquisition marks a significant step toward increasing our competitiveness in the growing German social casino market. Leveraging our combined operational expertise and enhanced scale, we aim to unlock valuable synergies. We are delighted to welcome the WHOW Games team to DoubleDown and look forward to working collaboratively on initiatives to drive growth across the business.”

Giovanni Valerio Valeriota, the Chief Executive Officer of WHOW Games, commented, “We are excited to begin this new chapter as part of the DoubleDown family. Their deep expertise in gaming makes them a natural fit for WHOW Games, and we believe that this partnership will accelerate our growth and innovation. I would like to express our sincere gratitude to Azerion, whose support and strategic guidance during our time together has been instrumental in shaping WHOW Games into the strong and dynamic company it is today.”

Note: (1) Based on an exchange rate of €1.00=$1.177 as of July 6, 2025

About DoubleDown Interactive

DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company’s flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years, entertaining millions of players worldwide with a lineup of classic and modern games. The Company’s subsidiary, SuprNation, also operates three real-money iGaming sites in Western Europe.

About WHOW Games

WHOW Games, headquartered in Hamburg, Germany, is a premier developer and operator of social casino games centered on the European market. Founded in 2014, WHOW Games specializes in both proprietary and branded social casino experiences. The company’s flagship proprietary brand, MyJackpot, has attracted a significant and loyal user base in Germany, while its strategic partnerships with internationally renowned brick-and-mortar casino brands have resulted in successful external brands like Merkur24.

About Azerion

Founded in 2014, Azerion (EURONEXT: AZRN) is one of Europe’s largest digital advertising and entertainment media platforms. Azerion brings global scaled audiences to advertisers in an easy and cost-effective way, delivered through our proprietary technology, in a safe, engaging, and high quality environment, utilizing our strategic portfolio of owned and operated content with entertainment and other digital publishing partners.

Having its roots in Europe and with its headquarters in Amsterdam, Azerion has commercial teams based in 21 cities around the world to closely support our clients and partners to find and execute creative ways to make a real impact through advertising.

Safe Harbor Statement

Certain statements contained in this press release are “forward-looking statements” about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as “anticipates,” believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” potential,” “near-term,” long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will,” and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors, which include, but are not limited to, delays or other challenges in the completion of the acquisition of WHOW Games and its integration and the success of its current and future games as part of our Company. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Company Contact:
Joe Sigrist
ir@doubledown.com
+1 (206) 773-2266
Chief Financial Officer
https://www.doubledowninteractive.com

Investor Relations Contact:
Joseph Jaffoni
JCIR
+1 (212) 835-8500
DDI@jcir.com

FAQ

How much is DoubleDown Interactive (DDI) paying for WHOW Games?

DoubleDown is paying an initial €55 million ($64.7 million) with potential additional earn-out payments of up to €10 million over two years, contingent on performance targets.

What is WHOW Games' annual revenue?

WHOW Games reported unaudited revenue of €41.8 million for calendar year 2024.

When will the DDI acquisition of WHOW Games close?

The acquisition is expected to close during the third quarter of 2025.

What gaming products does WHOW Games operate?

WHOW Games operates social casino apps including proprietary brands MyJackpot and Lounge777, as well as third-party labeled offerings like Merkur24 through licensing agreements.

How will DoubleDown Interactive finance the WHOW Games acquisition?

The acquisition will be financed through DoubleDown's existing cash reserves.

What are the strategic benefits of DDI acquiring WHOW Games?

The acquisition strengthens DoubleDown's presence in the growing European social casino market, particularly in Germany, while providing operational synergies in marketing, gaming content, and development resources.