Posted on: September 18, 2024, 05:27h.
Last updated on: September 18, 2024, 05:27h.
Mobile gaming developer Playtika (NASDAQ: PLTK) has announced a $700 million acquisition of rival SuperPlay, with a potential additional payment of up to $1.25 billion.
The acquisition has been approved by the boards of both companies. The final price could reach $1.25 billion if SuperPlay meets certain financial targets in the years 2025, 2026, and 2027. This includes specific EBITDA and sales goals, enhancing Playtika’s position in mobile gaming.
Founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory, SuperPlay has been successful with games like Dice Dreams and Domino Dreams, with two more titles in development,” Playtika stated.
The transaction is expected to be completed in the fourth quarter.
Impact on Playtika
Playtika’s stock has declined 22% in the past year, leading to concerns about user growth and reliance on a few key titles. The acquisition of SuperPlay could address these concerns and diversify Playtika’s portfolio with new growth opportunities.
The purchase of SuperPlay could provide new avenues for growth, adding to Playtika’s position as a leader in mobile gaming with high-grossing titles.
“In 2024, Dice Dreams and Domino Dreams have seen rapid growth, with a combined 1.7 million Average Daily Active Users as of August,” Playtika added.
SuperPlay’s founders will continue to operate the company within Playtika as an independent studio.
SuperPlay’s Contribution to Playtika
SuperPlay’s success with games like Dice Dreams is expected to boost Playtika’s revenue. Dice Dreams has exceeded $400 million in revenue, aided by the release of Monopoly Go! in 2021.
“In the years leading up to Monopoly Go!’s launch, Dice Dreams generated $125 million. However, since the release of Monopoly Go!, the game’s revenue surged to reach $400 million in a year and a few months,” reported SensorTower.
The research firm noted that both games are popular in the U.S., with Monopoly Go! not affecting Dice Dreams’ market share.