Four Tree Island Advisory urges rejection of DoubleU Games' undervalued $11.25 per ADS takeover offer for DoubleDown Interactive.

Four Tree Island Advisory, a major shareholder of DoubleDown Interactive (DDI), has called on the special committee of DDI's board to reject controlling shareholder DoubleU Games' takeover proposal of $11.25 per ADS. The advisory argues the offer significantly undervalues the company, assigning little to no value to DDI's operating business despite improved EBITDA and strategic acquisitions since 2021. They highlight that DoubleU Games' previous acquisitions valued DDI much higher, and the current offer benefits DoubleU Games disproportionately by cutting public company expenses without sharing savings with minority shareholders. Four Tree Island Advisory urges an independent appraisal to ensure any proposal fairly reflects DDI's intrinsic value and encourages minority shareholders to voice their concerns.