Harry Potter: Hogwarts Mystery developer Jam City is no longer going public via a merger with DPCM Capital. The deal, originally revealed this May, would've seen the mobile studio merge with DPCM Capital to form Jam City Holdings and bring the resulting company's valuation to $1.2 billion.
Originally, going public in this way was intended to boost Jam City's capital which, in turn, aims to accelerate the mobile-facing company's growth. Instead, a press release from DPCM Capital published over the weekend now says that both parties have mutually agreed to terminate those plans.
"In light of current market conditions, DPCM Capital and Jam City believe that terminating the business combination agreement is the best path forward for the parties and their respective stockholders," explains the brief press release. The now-canceled deal would've also included the acquisition of Montreal-based mobile publisher Ludia.
For its part, DPCM Capital notes that it is still "evaluating alternative business combinations" elsewhere for a potential merger, however any alternative plans Jam City may have made in lieu of the merger have yet to be disclosed.