Keywords Studios, the global video game services company, has received an updated possible cash offer of 2,450 pence per share from EQT Group.
Keywords Studios share price were higher 5.79% at the time of writing after it announced the updated offer price alongside a trading update.
The company’s board has indicated that it would be inclined to recommend the offer to shareholders. The deadline for EQT to announce a firm intention to make an offer has been extended to 5pm on 3 July 2024.
The company will pay its 2023 final dividend of 1.76 pence on 28 June 2024, as previously announced.
Keywords Studios have had a tough first half of 2024 due to to the deferral or cancellation of large game development projects, softer demand in its Globalise division, and a slow recovery in Hollywood content. Despite the challenges, the company expects revenue is projected to grow by approximately 7% in the first half.
The company anticipates a more robust second half, forecasting organic growth of around 10%. This aligns with Keywords Studios’ medium-term guidance and reflects growing spend from larger clients and an expected stronger recovery from the US entertainment industry strikes.
