Playtika’s (NASDAQ: PLTK) stock experienced a significant drop on Monday following news that the firm is contemplating selling its SuperPlay division to Tencent (OTC: TCEHY).
During midday trading, shares of the Israeli mobile gaming company saw a decline of nearly 8%, with trading volume surpassing the daily average after Calcalist reported that Tencent is eyeing SuperPlay with a potential deal valued at between $1 billion and $1.5 billion. Tencent stands as a leader in internet and mobile entertainment in China.
As a prominent player in the mobile gaming industry, Playtika announced its second strategic assessment this April, aimed at rejuvenating its stock, which has plummeted 88% since its January 2021 IPO.
At this point, it remains uncertain when Playtika and Tencent might finalize any agreement.
SuperPlay Presents a Unique Challenge for Playtika
Playtika disclosed the acquisition of SuperPlay in September 2024, stating the initial price was set at $700 million, with the potential to rise to $1.25 billion if specific financial targets are met during 2025, 2026, and 2027.
As reported by Calcalist, SuperPlay is gaining traction rapidly, which should typically bode well for Playtika. However, this growth is causing financial strain due to increasing future contingent payments. As of the end of Q1, Playtika estimated $829 million in future payments related to SuperPlay, marking a $95 million increase from the end of 2025.
With $2.3 billion in debt scheduled to mature in 2028 and 2029, Playtika finds itself in a position where refinancing is unappealing due to the remarkably low-interest rates currently attached to those debts, compelling the company to avoid taking on higher rates.
Calcalist mentions that should Tencent gain ownership of SuperPlay, the negotiated acquisition price would exclude those contingent liabilities, allowing the seller to potentially profit. SuperPlay was established in 2019 by two former employees of Playtika.
SuperPlay: A Lucrative Acquisition for Tencent
For Tencent, SuperPlay represents a valuable acquisition prospect, boasting a diverse gaming library that includes titles like Dice Dreams and Domino Dreams.
Nevertheless, the real highlight is Disney Solitaire, launched last year. This title quickly became the second-largest mobile game introduction of 2025 outside of Asia, generating an impressive $300 million in player spending, according to Pocket Gamer.
Disney Solitaire could complement Tencent’s existing portfolio, particularly with its leading mobile game, Honor of Kings.