South Korean gaming supplier DoubleU Games has signed a definitive agreement with DoubleDown Interactive for a cash tender offer at $16.25 per American Depositary Share (ADS) held by outside investors. The price is 44.4% above its $11.25 non-binding proposal in April.
DoubleU Games already owns approximately 67.05% of DoubleDown Interactive's common shares. The revised price and structure followed negotiations with a committee of independent DoubleDown Interactive directors, which obtained a fairness opinion from financial adviser Kroll.
DoubleDown Interactive's board approved the agreement and recommended that unaffiliated ADS holders accept the offer.
The tender offer has yet to commence. Under the agreement, DoubleU Games must launch it within seven business days of signing and keep it open for at least 20 business days. Once it does, the companies are expected to file offer and recommendation documents with US securities regulators.
The agreement initially requires DoubleU Games to hold at least 95% of the outstanding common shares after accepting validly tendered ADSs.
With DoubleDown Interactive's consent, that ownership threshold could be reduced to no less than 90%. More than half of the ADSs held by unaffiliated investors must also be tendered, a condition that cannot be waived. If the offer closes, DoubleU Games has agreed to acquire any remaining shares through a second transaction at the same price per ADS.
The agreement replaces an April proposal for a merger or comprehensive share exchange under Korean law. That proposal contemplated an 80% shareholder approval threshold, including support from investors outside DoubleU Games.
Each ADS represents one-twentieth of a DoubleDown Interactive common share, with the tender price quoted per depositary security.
DoubleDown Interactive publishes free-to-play social casino games and operates real-money iGaming sites through SuprNation. It acquired Hamburg-based social casino developer WHOW Games in July 2025.
In the second quarter of 2026, DoubleDown Interactive reported $94.3m in revenue, including $77.3m from social casino games and $17m from SuprNation.
The offer carries no financing condition. DoubleU Games expects to use cash and a bridge loan facility to pay for the tender and follow-on transaction. Completion still depends on the tender conditions and other requirements in the agreement. If it succeeds, DoubleDown Interactive would become a wholly owned subsidiary of its current controlling shareholder.
An April report on the proposed DoubleDown Interactive buyout described DoubleU Games' plan to combine social casino product, technology and live-operations teams across the group.
DoubleDown Interactive is due to report its third-quarter 2026 results on November 11, a date it announced in October
